Bankų vidinio vertinimo metodikos tobulinimo kryptys
Trends in the Development of Bank Internal Asseccment Methodology

Summary/Abstract: The article deals with the banks’ internal valuation improvement issue. The internal valuation of the bank usually concentrates on shareholders’ purpose – increas-ing of profitability and cash flow of bank. External valua-tors as credit rating agencies emphasize the complexity of analysis that includes the assessment of risk and qualita-tive aspects as well as profitability and cash flow analy-sis. As the economy is volatile nowadays, it is not cor-rect to pay insufficient attention to risks of loan portfolio quality, capital adequacy, management qualification and other qualitative factors. Therefore the quality of the banks’ assessment is also important to the government, banking supervisors, banks’ customers and society, inter-ested in stable and safe growth of the economy. The theoretical disclosure of methodologies used by internal and external evaluators showed the high vari-ety of methods and indicators especially in the field of external valuation. So the practical determination of the most important indicators was needed. Therefore the re-search of most frequent methods used by internal and external valuators was performed. The practical research of Lithuanian commercial banks, global credit agencies data and expert’s opinion let to find out the main internal and external indicators. Nine indicators as Total debt / Tangible equity; ROA; ROE; Provisions / Loan portfolio; Non – performing loans / Equity and reserves; Provisions / Non – performing loans; Non – performing loans / Pre – provision income; Additional expenses in income; Deposits were mentioned. The correlation among these indicators was found and explained. As the consequence of that the future trends of creation of the effective evaluation model can be seen. Econometrical model of the analysis should be used for this purpose. Finally it could be stated, that the correct im-provement of internal valuation of bank can be obtained by using methods of credit rating agencies. The creation of the effective model and adopting it in practice would lead to better performance, higher credit rating and stable growth of single banks, banking sector as well as com-plete economy of the country.

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