Bank Valuation & Value-Based Management

The acquisition of a bank and value-based management in banking -the set of actions that enhance a bank’s market value- both demand an adequate bank valuation model. This requires very specific financial techniques, different from those of standard corporate finance. Anchored in the field of economics and finance, a bank valuation model has been developed by Professor Jean Dermine. It provides solid foundations not only to value banks, but also to discuss managerial issues such as advanced fund transfer pricing in the presence of liquidity risk or credit risk, loan pricing and provisioning, deposit pricing, performance evaluation, and the management of interest rate risk on the banking book. The Book written by Jean Dermine and this Course are the result of 25 years of research and development on Bank Management at INSEAD. To create value in banking is necessary to first understand the drivers of value. A sound and explicit bank valuation model is, as shown during this course/program, a very powerful tool for evaluating decisions that enhance shareholder value.