This book brings together academic work on contemporary issues in financial institutions and markets. The general theme is designed to allow for a wide range of topics, covering the diverse nature of academic enquiry in banking and finance. Therefore, the contributions address a broad spectrum of contemporary issues in banking and financial markets, including bank diversification and securitization activities; bank regulatory reforms and competition; the performance of mutual funds and alternative asset classes; role of liquidity in price discovery for credit derivatives; and the existence of the compass rose pattern within option contracts market. This book was originally published as a special issue of The European Journal of Finance.