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Up-front loss taking and formal timetable for disposal of bad bank assets crystallizes sum-of-the parts (core and bad bank) valuation.
And Beijing's bank regulator has started requiring commercial banks to look at the bank valuation and the transaction price, then to base the mortgage on whichever price is lower.
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The third point is that bank valuations reflect an awful lot of bad news.
Thus the board is rejecting what may be a common method of auditing bank valuations.
Bank valuations are low; several banks might need to raise several times more than their current market value.
Agricultural Bank will compete for investors' money with publicly traded rivals that plan to raise a combined $32 billion in stock and bond sales even with bank valuations near record low levels.
The past two buying opportunities for banks occurred when they traded at 40-45% of the market multiple, says Mr Cassidy; at the start of April they traded at 87% of the average rating.More exotically, James Montier, a strategist at Société Générale, says that in the 1990-92 downturn, British bank valuations bottomed when market values were around 3-4% of deposits.
With bank valuations improving and with Clydesdale focussed on less risky consumer and small business banking, that could make Scotland's third biggest lender a more attractive buying prospect.
But that is problematic - because right now their lack of adaptability is hurting bank valuations significantly.
The difference between the banks' valuations is probably influenced by negotiating tactics.
The drop over the past week in banking valuations has lowered Spain's main stock market index to levels not seen since 2003.
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