Focuses on recent developments in theory and empirical research relating to banking and bank management. Topics include: the development of banking models; the uniqueness of banks and bank lending; advanced techniques in bank risk management; analysis of bank cost functions in the context of economies of scale, economies of scope, expense preference behaviour, and the contestable markets hypothesis; the regulatory environment and its impact on bank valuation and banking practice; optimal capital and capital adequacy; modelling off-balance sheet activities; and models of international banking.