Asset valuation review

Asset valuation review is the process where a regulatory body estimates the value of assets of a failed bank. This process is used so that a positional buyer would get the price for which to buy the assets of failed bank.
When a bank or other financial institution fails, it is being turned to a governmental body. Somebody can buy it from government, and the body that determines the value of those remained assets determines the price through the asset valuation review.
The duty of the governmental body is to examine all leftover values and to present it to the public.
The process of asset valuation can be difficult as the reviewer has to examine the bank’s portfolio of assets and determine its value. Since banks have a large portfolio of assets, the reviewers use sampling method to estimate their value. This saves lots of time, which is necessary in order to finish the job as soon as possible.

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