The issues of valuation of commercial banks in the post-covid era

Problematika oceňování komerčních bank v postcovidové době

Milan Hrdý

Oceňování, 2025, vol. 18, issue 1, 24-32

Abstract: The aim of this contribution is the analysis of the fact whether the situation in connection with SARS-CoV-2 had a more fundamental effect on the risks and on the valuation process of commercial banks. A simple hypothesis was defined, that due to the very strong financial health of Czech commercial banks and their high stability, there should not be major negative changes to their valuation process. The basic methodological tools of this contribution are the analysis of the given state, the method of comparing the current state with new findings, as well as the final synthesis with relevant recommendations for the area of ​​valuation of commercial banks. The analysis carried out indeed showed that, despite a certain short-term decline in the performance of Czech commercial banks in the crisis year 2020, that Czech commercial banks dealt with the coronavirus crisis very well and the default rate did not increase significantly. It follows that the coronavirus crisis will not have any major impact on the valuation of commercial banks. It has been confirmed that the very good financial health of Czech commercial banks and the strict regulatory policy of the CNB increase the resilience of these institutions in the event of respective crises. Strengthening regulatory measures could only have a negative effect on the reduction of the value of commercial banks, especially in the case of the use of income methods.

Keywords: Valuation; SARS-Cov-2; Risk; Commercial Banks; Oceňování; Komerční banky; Riziko (search for similar items in EconPapers)
JEL-codes: G20 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.18267/j.ocenovani.298

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