The Selection Criteria of the Valuation Firm to Undertake The Valuation Assignments of Financial institutions

Abstract

According to our pilot study, it was found that Thailand’s financial institutions
currently do not have the evaluation criteria/standards to select the valuation firms
to undertake the bank’s valuation assignments. This study aims to propose the most
appropriate evaluation criteria for selecting the best valuation company to undertake
the assignment of Thailand’s financial institutions. We conducted the structured
interview to collect the qualitative data from the selected 5 largest commercial banks
(fiscal year of 2013) which were Siam Commercial Bank PCL., Bangkok Bank PCL.,
Kasikornthai Bank PCL., Krung Thai PCL., and Bank of Ayudhya PCL., respectively. The
results found from this data collection process helped in settling the criteria to select
the valuation firms. This combined with 1. License issued by Stock Exchange Committee
(SEC), 2. Financial status, 3. Experience of the firms, 4. Number of valuers, 5. The Principle
valuers and 6. Experience of the valuers, respectively. The study’s results shall be
applied from other financial institution in regard to select the valuation firm, while
companies can prepare the company’s profiles to respond to the financial institutions’
requirements. These are regards to increase the quality of valuations’ services to meet
the preferred standards.