Description
This book aims to conquer the constraints 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 system comprises an Adjusted Present Value model, which permits practitioners to spot the principle value creation sources of a particular bank: from asset-based cash glide and the mark-down on deposits, to tax benefits on bearing liabilities. In the course of the implementation of this framework, the authors offer a more accurate and more specific way to valuing banks.