Valuing Banks in Uncertain Times: With Special Reference to Islamic Banks

Schoon, Natalie

ISBN 10: 1907444041 / ISBN 13: 9781907444043

Published by Spiramus Press, 2010

About this Item

Your purchase helps support Sri Lankan Children's Charity 'The Rainbow Centre'. Ex-library, so some stamps and wear, but in good overall condition. Our donations to The Rainbow Centre have helped provide an education and a safe haven to hundreds of children who live in appalling conditions.

Seller Inventory # Z1-T-013-01170

Bibliographic Details

• Title: Valuing Banks in Uncertain Times: With Special Reference to Islamic Banks
• Publisher: Spiramus Press
• Publication Date: 2010
• Language: English
• ISBN 10: 1907444041
• ISBN 13: 9781907444043
• Binding: Soft cover
• Condition: Good

About this title

Synopsis

The main question that this book addresses is whether it is possible to determine the value of banks in general and Islamic banks in particular using generally available valuation models. But does this still hold in the current uncertain times?

Questions that will be addressed include the suitability of price as the right benchmark, what is the impact of market psychology and how accurate are future cash flow estimations. Over the years, large numbers of academics and practitioners have looked into the valuation of companies and the different techniques that can be applied. Discounted cash flow, residual income and economic value added (EVA) are only a few of the techniques that have been researched extensively. Typically, these cover either a specific industry, or a large diverse set of listed companies, but without exception exclude financial institutions. The reasons for this exclusion are simply that the characteristics are different from other industries and the fact that financial institutions, specifically banks, are notoriously difficult to value. But are they really that difficult to value and if so, why?

As a result of the global growth of the Islamic banking industry it becomes increasingly important to be able to determine the value of Islamic banks and compare their ability to create value with other banks in the industry. For Islamic banks, the estimation of parameters differs, amongst others due to the different balance sheet structure, and the lack of availability of market data.

About the Author

Dr. Natalie Schoon, CFA is a principal consultant with Formabb Ltd and specialises in Risk Management, Capital Adequacy, and Islamic Finance. During her career she has worked with a number of financial institutions in a variety of locations globally.