Bank Valuation & Value-Based Management

Día Uno: Julio 5

Pre-reading: Case Bank Valuation (by Jean Dermine to be read the evening before)

• 8:45 Registration of participants and coffee
• 9:00 - 9:15 Introduction

The Determinants of the Market Value of a Bank

• 9:15 - 10:45 The Determinants of the Market Value of a Bank: Four Methods
• 10:45 - 11:00 Break
• 11:00 - 12:45 The Determinants of the Market Value of a Bank (cont.)

Valuation Exercises

• 12:45 - 13:00 Break
• 13:00 - 14:30 Group work Case: “Bank Valuation”
• 14:30 – 16:00 Lunch/Dinner
• 16:00 - 17:00 Plenary session Case “Bank Valuation”

Value-based Management, an Introduction

• 17:00 - 17:45 Value Center and Fund Transfer Pricing (FTP), an introduction

Día Dos: Julio 6

Pre-reading:

ING Direct, a Growing Success Story (by Jean Dermine to be read the evening before)

Value-based Management

• 8:30 - 10:30 Advanced Fund Transfer Pricing (FTP)
  • Liquidity risk adjustment
  • Effective maturity for non-maturing deposits
  • Credit risk adjustment
  • Conditional FTP
• 10:30 - 10:45 Break
• 10:45 - 12:30 Basel 2 and 3, Loan Pricing and ex ante Dynamic Provisioning
• 12:30 - 12:45 Break
• 12:45 - 14:30 Interest Rate Risk and Value Creation, the case of ING Direct

Introduction and Group Work

• 14:30 - 16:00 Lunch/Dinner
• 16:00 - 16:45 Plenary Session Discussion Case ING Direct
• 16:45 - 17:45 Diversification of Risks and Value Creation
• 17:45 - 18:00 Conclusions