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Valuation models are typically designed to value all types of corporations excluding financial institutions. This book sets out to prove that valuation models can equally be applied to financial institutions as long as the different components of the model are carefully determined. After assessing the most appropriate model, the challenges with valuing banks are considered. The treatment of customer deposits and off-balance sheet instruments, and the determination of capital are just a few of the issues addressed. Once the most appropriate model is established, the results are taken one step further and applied to a relative newcomer in the financial industry - Islamic financial institutions. This book will illustrate how the model works for both established and relatively new financial institutions. Although the focus of this book is on conventional and Islamic financial institutions, the application of the model does not have to stop there and it could, for example, be used for the valuation of challenger banks.
About the author
Dr Natalie Schoon, CFA, LLM is a world renowned expert in Islamic finance with significant experience in both conventional and Islamic finance. She has lived and worked in the Middle East, Europe and Afghanistan. Natalie works as an advisor for international financial institutions, international development organisations, and industry bodies.