Six drivers of bank valuation

Books of Account
Bank Valuation & Value-Based Management
Jean Dermine
( http://www.tatamcgrawhill.com/)

Bank valuation

The first of the six drivers of bank valuation is economic growth, writes Jean Dermine in Bank Valuation & Value-Based Management. Around the world, the nominal growth of the balance sheets of banks is closely linked to the nominal growth of gross domestic product (GDP), he adds. “Nominal growth includes real growth plus inflation.

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