Identifying Factors Affecting the Value of the Bank

In this graduate qualification work, a study was conducted to identify factors that affect the value of the bank. Subsequently, the model was applied to the bank that does not have securities outstanding in the stock market, namely the RNCB, to calculate its market capitalization. The relevance of the topic is determined with the need to calculate the market capitalization in order to know the market value of the bank, and also how efficiently the credit organization operates. For this reason, a review of the literature regarding to the cost of the bank, the cost factors and the main methods for estimating the value of the company was made. The next step was an overview of the banking sector, and in particular of the RNCB. Before the construction of the model, regressors for inclusion in the model were selected. A model of the bank's value has been constructed, the quality of which has been verified with the help of various tests. Thus, the factors influencing the value of the bank, as well as the extent of their influence, are determined. The application of the model to calculate the market capitalization of the RNCB led to results that were contrary to common sense due to the bias of the model because of the presence of mostly large banks in the sample in contrast to RNCB. So it was decided to apply the model to another larger bank, namely, Rosselkhozbank. After this, an adequate result was obtained.