COMPUTATIONAL TECHNIQUES FOR BANKING (Studies in Financial Optimization and Risk Management)

The last decades have been strongly characterised by vertiginous technological, social and economic changes. Those changes have in part positively affected our lives; however they also led to an increasing uncertainty and instability at every field of human activity. In addition, the interdependence and the interrelationship among various fields and especially between the global financial markets have created a fragile environment, which requires delicate handling and attentive movements. Thus the complexity of the systems considered in every field, nowadays, more than ever, needs the skilful manipulation of the known methodologies and techniques for the best management. Research and development give emphasis on the computational optimisation as an essential, critical component. At every field of human activity, optimisation is more than important. Everybody tries to optimise, minimise or maximise the cost, profit, efficiency, output. In the area of economics and finance, simple and more complex tools have been created towards this direction. Different methodologies and analytical techniques have been developed to analyse a vast number of problems such as risk management, asset pricing, portfolio construction, forecasting, interest rate modelling, capital measurement, efficiency estimation, investment evaluation, business failure, etc.,