evaluation of financial institutions

evaluation of financial institutions

OPTION 2

Objective 1

Table. 3 shows the estimated financial performance of the commercial bank "Bank" Revival "and banks peers.

You must select and calculate the estimated multiples, based on them to determine the market value of a minority stake in OJSC "Bank" Revival "of 15% of the share capital.


Table. 3. Financial indicators of commercial banks as of 01.01.05

Indicator * OAO "Bank" Revival "JSC CB" Petrocommerce "JSCB" Stella-Bank "OJSC" URALSIB "OAO" Penza provincial bank "Tarkhany" of "DPM" (Industrial Construction Bank)

Market capitalization, ths. Rub. 387 000 9 700 9 903 000 463 000 11 595 000

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Task 2

As at 01.01.06, the carrying value of debt securities - bills and bankers´ acceptances Commercial Bank OJSC "Bank" Revival "was 3,957,081 thousand. Rub. The structure of debt securities, the average actual borrowing rates Bank (conditional value) and average market rates to attract funds by commercial banks under the promissory notes issued to the corresponding maturity (data of the Central Bank of the Russian Federation) are presented in the Table. 1.

Table. 5. Structure of the Bank issued debt securities

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Control questions:

1. Describe the main weaknesses of the market of direct loans (direct financing scheme).

2. What are credit and financial institutions relating to the deposit type and describe the scheme they receive a basic income.

3. Describe the scheme of constructing the cash flow when valuing a business bank the income approach methods