Introduction, Why Are Financial Intermediaries Special, The Financial Services Industry: Depository Institutions, The Financial Services Industry: Insurance Companies, The Financial Services Industry: Securities Firms and Investment Banks, The Financial Services Industry: Mutual Funds and Hedge Funds, The Financial Services Industry: Finance Companies, Risk of Financial Intermediation, Measuring Risk, Interest Rate Risk, Market Risk, Credit Risk: Individual Loan Risk, Credit Risk: Loan Portfolio and Concentration Risk, Off-Balance-Sheet Risk, Foreign Exchange Risk, Sovereign Risk, Technology and Other Operational Risks, Liquidity Risk, Managing Risk, Liability and Liquidity Management, Deposit Insurance and Other Liability Guarantees, Capital Adequacy, Product Diversification, Geographic Expansion, Futures and Forwards, Options and Caps and Floors and Collars, Swaps, Loan Sales, Securitization.