RMA, Parsons Back with New Book, Investing in Banks

Philadelphia, PA (May 18, 2016) —

The latest book from The Risk Management Association is now available.  

The Risk Management Association is proud to partner once again with banking expert Rick Parsons on a book that banking practitioners and investors alike will find invaluable.

In his acclaimed 2013 RMA book Broke, Parsons recommended systemic improvements to basic banking in America and offered a common sense approach to transforming the industry post-crisis.

Now, with Investing in Banks: Strategies and Statistics for Bankers, Directors, and Investors, Parsons focuses on the banking statistics that translate to long-term earnings and stock market success—and the ones that spell trouble.

From loan-product concentrations to bank capital to the all-important risk-adjusted return on equity (RAROE), Parsons sheds light on the metrics that matter to banks of all sizes. He also identifies big picture risks that threaten bank profitability and shareholder returns. Readers are introduced to banks that have overcome industry commoditization pressures by developing competitive advantages that reward shareholders with superior long-term risk-adjusted returns.

In addition to being a highly practical book, it also makes for interesting reading: If you ever wondered about how the age of a CEO affects the likelihood that a bank will be sold, or what determines Warren Buffett’s bank stock purchases, Investing in Banks has the answers.  

Investing in Banksprovides a new, data-driven blueprint for maximizing bank performance while at the same time noting the risks that threaten the industry,” said RMA CEO Bill Githens. “RMA is proud to add this publication to our catalogue.”

Parsons, who writes and speaks about banking, is a frequent contributor to American Banker and The RMA Journal. He retired as an executive vice president from Bank of America after a 31-year career. As a buy-and-hold bank investor, he looks for banks led by skilled executives with a solid record for producing superior risk-adjusted results.

Investing in Banks is available now in paperback at Amazon.com and through the RMA website. An e-book version will be available soon through Amazon.

Other recent RMA books include:

  • Broke: America’s Banking System, Common Sense Ideas to Fix Banking in America, by Richard J. Parsons—A look at why more than 3,000 financial institutions have failed in the U.S. since the 1980s and recommendations for systemic improvements.  
  • Perspectives on Credit Risk, Portfolio Management, and Capital: Readings from The RMA Journal, edited by Joseph L. Breeden and Michel Araten—The articles showcase the contributions RMA and the various authors made from 2001 to 2014 in advancing improvement in banks’ credit risk policies.
  • Banking Pillars: How Banks of All Sizes Can Achieve Excellence Under Basel III, by Peter Buerger— Focuses on key risk and performance indicators, sound capital planning, corporate governance, the liquidity coverage and leverage ratios, and requirements for systemically important financial institutions.

In the fall, RMA will publish A Director’s Voyage through Risk Management, a guide for financial services industry board members as they navigate challenges including data quality, cybersecurity, third-party risk management, and regulatory compliance.  Its author, Dean Yoost, is a board member at MUFG Union Bank and Pacific Life Insurance Co., and a regular contributor to The RMA Journal.

About RMA

The Risk Management Association is a not-for-profit, member-driven professional association whose sole purpose is to advance the use of sound risk management principles in the financial services industry. RMA promotes an enterprise approach to risk management that focuses on credit risk, market risk, and operational risk. Headquartered in Philadelphia, Pennsylvania, RMA has 2,500 institutional members that include banks of all sizes as well as nonbank financial institutions. They are represented in the association by more than 18,000 risk management professionals who are chapter members in financial centers throughout North America, Europe, Australia, and Asia/Pacific. Visit RMA on the Web at www.rmahq.org.

Media Contacts

Stephen Krasowski, skrasowski@rmahq.org, 215-446-4095
Frank Devlin, fdevlin@rmahq.org, 215-446-4137