Strategic Management of Profitability in Banking from an Asset and Liability View. Macroprudential, Microprudential, Stress Test and Strategic Planning Considerations - Antonio Mota Pizarro

Can a bank be both profitable and fragile at the same time? The uncomfortable answer is yes.

Banks do not fail simply because they take risks. They fail when those risks are mispriced, under-compensated, and allowed to accumulate over time.

This book introduces Pricing Gap as a new analytical framework that moves beyond the traditional accounting view of banking. It argues that asset and liability management (ALM) should not be a passive control function, but a proactive engine at the heart of balance-sheet strategy. With a common methodology linking supervision, stress testing and strategic planning, Pricing Gap offers a powerful new lens through which to understand the resilience of banks.

Through its discussion of fund transfer pricing, the book reveals the hidden gap between the prices embedded in a bank’s balance sheet and the risk-based prices required to sustain its business model over time. From this gap emerge two decisive concepts for modern banking: sustainability and viability.

Combining insights from banking crises, capital regulation, macroprudential policy, business model analysis, stress testing and strategic planning, this book challenges a central assumption of today’s regulatory debate: more capital alone is not enough. Without sound pricing, capital can absorb losses, but it cannot prevent fragility.

The Moorad Choudhry Global Banking Series
edited by Professor Moorad Choudhry

The Moorad Choudhry Global Banking series is a new collection of books aimed at market practitioners, academics and graduate students in key areas of global banking. It covers core topics such as risk management, corporate governance and strategy, as well as recent developments affecting the future of banking, including digital banking, machine learning, fintech, blockchain and the latest in product development.

The series is designed to be all-encompassing, with titles ranging from technical and specialist areas such as derivatives central clearing to wider areas of social interest such as corporate governance and corporate social responsibility in banking. It aims to present current and future best-practice in all aspects of banking, from the world’s leading writers on this topic. Authors will be experienced and respected practitioners and academics from globally recognised institutions.

The series engages a global perspective on the changing nature of banking. It seeks authors with innovative approaches to the subject or an interest in challenging established conventions. It welcomes both monographs and edited collections that share these aims. We are looking for interesting new book proposals, which might include:

• Individual monographs which allow research ideas to be developed at greater length than might be possible in journal articles

• Edited volumes which draw together multiple contributors from different organisations and institutions around a particular theme

• Technical publications covering specialist topics

• Contributions which offer novel approaches to any aspect of banking.

Series Editor:
If you are interested in submitting a proposal or have any questions, please contact the Series Editor:
mooradchoudhry@gmail.com
Professor Moorad Choudhry
P.O. Box 101 East Horsley KT24 5EU
England
Mobile/WhatsApp +447767624942

Moorad Choudhry about his series at De Gruyter: https://www.youtube.com/watch?v=VYFpIjrz8Yo&list=PLfcENNPixVmNtH86X0G6YnYOF9GLh3Tu9&index=3