IMPROVING THE EXCESS RETURN METHOD FOR THE PURPOSE OF BANK VALUATION

Abstract

The relevance of objective and precisebank valuation conduction has been steadily increasing in recent years. However, all existing valuation methods and models have some limitations to value a bank with a high degree of accuracy, simplicity and clarity. A modifi ed version of the excess return valuation method that had been specially adapted for bankvaluation was proposed in the article. It isexpected that the proposed method will beused as a base for further development ofbank valuation tools and thus will significantly enhance the competitiveness andefficiency of the banking system.