Statistical approaches to the evaluation of business reputation of banks

• Main Author: Y. V. Kolesnik
• Format: Article
• Language: English
• Published: State Statistics Service of Ukraine, the National Academy of Statistics, Accounting and Audit (NASAA), the National Academy for Public Administration (NAPA) under the President of Ukraine 2016-12-01
• Series: Статистика України
• Subjects: bank; business reputation; risk of business reputation loss; goodwill, rating.
• Online Access: https://su-journal.com.ua/index.php/journal/article/view/220

In the article different approaches to the estimation of goodwill and considering it as an intangible asset at the bank are considered. The author proposed the statistical express method for the evaluation of goodwill based on the usage of the matrix of the characteristics. The goodwill can be considered as the original “rating” of the bank from the point of view of different task groups. This rating can be received as a result of integrated assessment, also made by statistical methods. The goodwill which appeared in connection with the purchase of property complex (in whole or its part) is considered as part of intangible asset. It is proved that positive goodwill increases the cost of the bank during its sale or consolidation, and negative goodwill lowers it, and in connection with this fact there emerges the necessity of managing the risk of losing the bank’s goodwill. The author proposes the method of building the rating model of the estimation of goodwill. For building the rating model of the estimation of goodwill the usage of the matrix of the characteristics is proposed, which allows to divide the banks in homogeneous groups with similar quality of goodwill. Every task groups imposes a particular set of requirements to the goodwill of the bank that works with clients, contracting parties, partners, shareholders and other task groups. It is inappropriate to make the same demands to the estimation of goodwill of all these groups, that is why the criteria of the estimation of goodwill should consider the belonging of the bank to a particular group. For example, we can group the banks according to the capital or assets dimension. Besides that it is useful to indicate universal banks and the group of specialized banks inside each group. Depending on the necessary specification inside the specialized banks it is also possible to divide them further into groups. Then inside each group it is useful to perform a different clusterization according to the unified pattern. For the statistical express estimation, the author proposes a system of criteria of goodwill of the homogeneous group of commercial banks which is based only on open public data. During the analysis of the received results it is proposed to use the grouping of the banks into subgroups. The usage of the indicated method allows each bank to evaluate its position in the group of the banks similar in value.