THE METHODOLOGY OF EVALUATING THE FINANCIAL POSITION OF A COMMERCIAL BANK IN RUSSIA BY A POTENTIAL INVESTOR

Abstract

The world financial crisis showed significant deficiencies in many rating methodologies of the evaluation of financial position of a commercial bank. This article describes the author’s methodology developed on the basis of the analysis of strengths and weaknesses of the most popular Russian and foreign methodologies of bank’s financial position evaluating. In order to get the most objective results the suggested methodology solves the problem of an overall analysis of numerous financial and non-financial indices of bank’s activity. The evaluating process falls into two stages: ratio express analysis and in-depth analysis of bank’s public accounts. At the first stage bank’s status is formed and at the second one - the resulting opinion of top-rank banks’ financial position for different types of investors.