Valuing a Bank Under IAS/IFRS and Basel II
Laura Wood
laura.wood na researchandmarkets.com
Sobota Listopad 3 13:56:34 CET 2007
I enclose details of our best selling IFRS and Basel II Guide.
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.
http://www.researchandmarkets.com/product/9d5e3a/valuing_a_bank_under_iasifrs_and_basel_ii
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 how 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.
For a complete overview of this report click on:
http://www.researchandmarkets.com/product/9d5e3a/valuing_a_bank_under_iasifrs_and_basel_ii
Report Index:
Module 1:Starting the Process of Valuing A Bank
Introduction
Factors affecting bank valuation
How mergers add value
What makes a merger unattractive
Three-step valuation process
Market value approach
Equity value approach
Bank risks
Data gathering
Summary
Module 2: IAS/IFRS Disclosure for Banks
Accounting policies under IAS 30
Preparation and Presentation of Banks' Financial Statements
Cash Flow Statement for Banks
Disclosure Requirements for Banks and Similar Institutions
Maturities of Assets and Liabilities
IAS 39 and hedging asset/liability mismatch
Concentration of Assets, Liabilities and Off-Balance Sheet Items
Losses on Loans and Advances
Related party transactions and other disclosures
Deficiencies of IAS 30
Proposed IFRS to Replace IAS 30-Preliminary Recommendations
Merger Accounting for Banks
Summary
Module 3: Book to Market Value
Current market values versus historical costs
FMV and a Bank's Assets and Liabilities: book to market implications
Determining the quality of the loan portfolio: a framework
Market value of fixed assets
Sales value of investment portfolio
Goodwill and other adjustments
Derivative financial instruments
Off-balance sheet items
Hedging issues
Case study example of book value to fair market value
Annex: Example of cash flow hedge
Module 4: Market Valuation Models
Model Basis
Appropriate discount rate
Model usage for assets
Model usage for liabilities
Model equations and formulas
Summary of valuation concepts
Module 5: Cash Flow Valuation for Banks
Cash flow and the equity approach
Free cash flow to shareholders
Discounted cash flow
Application to a bank
Estimating free cash flow
Step 1: Identifying the relevant components of free cash flow
Step 2: Developing an integrated historical perspective
Step 3: Forecasting changes in net interest income (NII) and developing the forecast assumptions
Step 4: Calculating and evaluating the resulting free cash flow forecast
Case study application
Module 6: GAP Value Drivers
Static GAP
Dynamic GAP
Determinants of rate sensitivity
Factors affecting net interest income
Changes in the Level of Interest Rates
Changes in the Relationship Between Short-Term Asset Yields and Liability Costs
Rate Sensitivity Reports
Strengths and Weaknesses: Gap Analysis
Managing the GAP
Link Between Gap and Net Interest Margin
Sensitivity and Simulation Analysis
The Duration Gap: Managing the Market Value of Equity
A Duration Application for Banks
An Immunized Portfolio
GAP versus Duration Gap: Which Model is Better?
Macrohedging and the GAP
Hedging and Duration Gap
Module 7: Equity Value Application
Free cash flow valuation:
Capital asset pricing model (CAPM),
Dividend valuation model, and
Targeted return on equity model.
Case applications
Premium to book value
Premium to adjusted book value
Price to earnings per share
Price to prevailing share price
Return on investment approach
EPS dilution constraints
Historical performance analysis
Case study implications
Nonfinancial considerations that affect mergers and acquisitions
Summary
Module 8: Enhancing Bank Value with Credit Derivatives
Definition of credit derivatives
Types of credit derivatives:
Credit options
Credit swaps
Credit-linked notes
The credit default swap
Protection sellers
Settlement risk
Correlation
Protection buyers
Optimizing returns on regulatory capital
The total return swap
Credit risk
Maturity
Value advantage
The principal-protected structure
Summary
Module 9: Basel II and Bank Value
Definitions of capital
Background to Basel I
Basel II:
Pillar 1 - capital adequacy requirement
Credit risk
Market risk
Operational risk
Pillar 2 - supervisory review
Pillar 3 - market discipline
Internal growth rate of capital (IGRC): a measure of the link between profitability and capital
Supplementary traditional capital ratios
Can shareholder value be added under Basel II?
Factors motivating regulatory capital arbitrage
Capital arbitrage in practice
Summary
Pricing:
Hard Copy : EUR 260
Ordering - Three easy ways to place your order:
1] Order online at http://www.researchandmarkets.com/product/9d5e3a/valuing_a_bank_under_iasifrs_and_basel_ii
2] Order by fax: Print an Order form from http://www.researchandmarkets.com/product/9d5e3a/valuing_a_bank_under_iasifrs_and_basel_ii and Fax to +353 1 4100 980
3] Order by mail: Print an Order form from http://www.researchandmarkets.com/product/9d5e3a/valuing_a_bank_under_iasifrs_and_basel_ii and post to Research and Markets Ltd. Guinness Center, Taylors Lane, Dublin 8. Ireland.
Related report also available from Research and Markets:
The Basel Handbook (2nd edition) - http://www.researchandmarkets.com/product/9d5e3a/the_basel_handbook_2nd_edition
Thank you for your consideration.
Best Regards,
Rachel Thompson
Senior Manager
Research and Markets Ltd
rachel.thompson na researchandmarkets.com
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