This second revision of Management Policies for Commercial

Banks is intended not only to bring the statistical background into

more current perspective but to take into account the many changes

that have taken place in the banking environment in the past five

years.

The emphasis of the late 1960 s and early 1970 s, in which many

banks set planning goals of a 10% annual compounded growth in earn-

ings per share, has faded in the face of serious loan losses in recent

years and the failure of several sizeable banks. The tasks facing bank

management have become increasingly challenging. In the final chap-

ter we attempt, to evaluate the challenges of the future.

As in the past two editions, the emphasis of this book is on the

ingredients of policy formulation and implementation--an area which

the regulatory authorities are increasingly stressing. It is designed not

only as a textbook for students of banking but as a guide for bank

directors who are responsible for the policies of their banks, and as a

training manual for junior bank officers to give them a broader view