TY  - GEN
N2  - Bank valuation is one of the most difficult topics to address in corporate finance. The application of standard valuation methodologies can be limited and heavily influenced by the varying specifics of regulation, business process, equity and debt capital function (among others) among banks. Generally, these limitations result in the application of a simplified equity-side approach based on dividends. Yet, dividends represent a synthetic measure of cash and, therefore, often do not present an accurate view of the value creation process in terms of cash flows. This book aims to overcome the limitations the variations in bank-specifics impose by providing a bank-specific valuation theoretical framework and a new asset-side model. The book includes also a constructive comparison of equity and asset side methods. The authors present a novel framework entitled, the "Asset Mark-down Model". This method incorporates an Adjusted Present Value model, which allows practitioners to identify the main value creation sources of a particular bank: from asset-based cash flow and the mark-down on deposits, to tax benefits on bearing liabilities. Through the implementation of this framework, the authors offer a more accurate and more specific approach to valuing banks.
DO  - 10.1057/978-1-137-56142-8
DO  - doi
AB  - Bank valuation is one of the most difficult topics to address in corporate finance. The application of standard valuation methodologies can be limited and heavily influenced by the varying specifics of regulation, business process, equity and debt capital function (among others) among banks. Generally, these limitations result in the application of a simplified equity-side approach based on dividends. Yet, dividends represent a synthetic measure of cash and, therefore, often do not present an accurate view of the value creation process in terms of cash flows. This book aims to overcome the limitations the variations in bank-specifics impose by providing a bank-specific valuation theoretical framework and a new asset-side model. The book includes also a constructive comparison of equity and asset side methods. The authors present a novel framework entitled, the "Asset Mark-down Model". This method incorporates an Adjusted Present Value model, which allows practitioners to identify the main value creation sources of a particular bank: from asset-based cash flow and the mark-down on deposits, to tax benefits on bearing liabilities. Through the implementation of this framework, the authors offer a more accurate and more specific approach to valuing banks.
T1  - Valuing Banks :a New Corporate Finance Approach /
AU  - Beltrame, Federico,
AU  - Previtali, Daniele,
CN  - HG1501-HG3550
ID  - 772208
KW  - Finance.
KW  - Corporations
KW  - Banks and banking.
KW  - Risk management.
KW  - Capital market.
KW  - Capital investments.
SN  - 9781137561428
SN  - 1137561424
TI  - Valuing Banks :a New Corporate Finance Approach /
LK  - https://univsouthin.idm.oclc.org/login?url=http://link.springer.com/10.1057/978-1-137-56142-8
UR  - https://univsouthin.idm.oclc.org/login?url=http://link.springer.com/10.1057/978-1-137-56142-8
ER  -