A Critical Assessment on Bank Valuation in Existing Literature in the Last Decade

  • Antonio Jaramillo Dayag University of Santo Tomas
  • Fernando Trinidad
Keywords: Bank Valuation, Valuation methods, Bank Value, Factor Impacting Valuation

Abstract

This paper examines vast literature covering bank valuation practices, frameworks, and various factors that impact bank valuation. Researches on bank valuation covering the last 10 [ten] years were made, and there appear to have a certain level of conservatism on how to measure value of banks. This could be due to the recent global financial crisis, and what is common among the studies was, discourage banks from taking on additional risks. Different factors impact bank valuation and it depends on country and economic circumstances, including banking regulations and internal governance. Various bank valuation frameworks were also added from extensive researches gathered. The literature review also identified nine [9] variables that impact bank valuation, seven [7] of which are bank-specific attributes, one [1] is regulation related, and one [1] is macroeconomic. Future researches may use these variables and validate significance using statistical methods.

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Published
2019-07-03
How to Cite
Dayag, A., & Trinidad, F. (2019). A Critical Assessment on Bank Valuation in Existing Literature in the Last Decade. International Journal of Research in Business and Social Science (2147- 4478), 8(4), 44-58. https://doi.org/10.20525/ijrbs.v8i4.279
Section
Articles