Financial Institutions: what are they really worth?
This complete self-study work book provides anyone involved in the valuation of a commercial bank for acquisitions or credit analysis with the essential tools and applications under the International Accounting Standards, International Financial Reporting Standards and within the Basel II environment.
This is a hands-on tutorial designed to unravel the complexities of valuation, and leads you through the application of specific models. The workbook is replete with real-life examples, case studies, exercises and self-test questions.
Discrete modules will give you the fundamentals and the applications affecting
bank valuation
disclosure
book to market value
valuation models
cash-flow valuation
GAP value drivers
equity valuations
enhancing valuation with credit derivatives
capital adequacy issues.
Appendices include key equations, examples and explanations of
- time value of money
- embedded options and applications
- description of bond ratings
- regulatory capital arbitrage
- financial statements
By the end, you will understand not only now bank mergers add value, how to choose your target, the standards applicable to the preparation of financial statements by banks, understand all of the relevant mathematical formulae, the controversies in bank valuation, and bring you up to date with the compatibility of regulatory capital and increasing shareholder value.
Includes complete self-test exercises, answers and full glossary of terms.
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