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
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