Veteran Banker Shares Insights on Regulation, Risk, and Capital
Harrison Young has had a distinguished career in banking and finance. He started as a senior executive in major US banks, then became a financial regulator responsible for resolving failing banks. Young was also a director of the Commonwealth Bank of Australia for ten years and on the court of directors of the Bank of England.
Young's book, Prudence and Ambition, is part autobiography, part guidebook for those considering a career in banking. He provides insights into important issues in banking, including the role of regulation and risk management.
Young explains that banks do not 'hold' capital, but rather it's a statistic - the value of a bank's assets minus its liabilities. This difference provides comfort to depositors and creditors that the bank will be able to meet its obligations even in times of financial stress.