EconPapers    
Economics at your fingertips  
 

The ABCs of bank PBRs

Bilyana Bogdanova, Ingo Fender and Elod Takats

BIS Quarterly Review, 2018

Abstract: Price-to-book ratios have been unusually low for many banks since the Great Financial Crisis. Ratios below one, in particular, have been seen as reflecting market concerns about banks' health and profitability as well as the need for shifts in business models. But what drives these valuations globally? What explains consistently low levels for some banks and jurisdictions? This special feature proposes an empirical valuation methodology based on the intangible value attached to bank assets and liabilities. Our model fits the data well across time and banks, suggesting that measures targeting traditional drivers of profitability, such as the proactive management of non-performing loans, remain essential in enhancing bank valuations.

JEL-codes: G21 G28 G3 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.bis.org/publ/qtrpdf/r_qt1803h.pdf (application/pdf)
http://www.bis.org/publ/qtrpdf/r_qt1803h.htm (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bis:bisqtr:1803h

Access Statistics for this article

BIS Quarterly Review is currently edited by Christian Upper

More articles in BIS Quarterly Review from Bank for International Settlements Contact information at EDIRC.
Bibliographic data for series maintained by Christian Beslmeisl ().

 
Page updated 2019-10-16
Handle: RePEc:bis:bisqtr:1803h