FM for Banks

supria.sony
Posts: 2
Joined: Sun Dec 02, 2012 11:28 pm

FM for Banks

Postby supria.sony » Mon Dec 10, 2012 7:07 pm

How to make financial model for banks? Banks financials are entirely different from that of normal companies. In the case of Banks; Balance Sheet is very important (Equivalent to CF statement in the normal companies).

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pankaj
Finance Junkie
Posts: 61
Joined: Fri Aug 03, 2012 11:24 am

FM for Banks

Postby pankaj » Wed Jan 09, 2013 11:05 am

True! modeling bank is totally different.............you need to take care of Risk weighted Capital, Tier 1 and Tire 2 capital, supplementary capital, revenue coming from interest received and vice-vera.
In banking model along with the DFC method you need to use the Residual Income Method of valution.

We are planning to create a course named "Excel for Banker" in which we will be covering bank valuation model.


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