Subject The article states that the reduction in the number of commercial banks in Russia, which is accompanied by integration of credit organizations remaining in the banking services market, and the increased share of foreign banking capital in the Russian banking system predetermine the intensification of competition among commercial banks and force them to look for new forms and methods of their competitiveness enhancement. Among them, the aspiration to form or develop a commercial bank's brand deserves special attention. I emphasize that though the brand concept is widely used in scientific literature and business practice, there is no accurate definition of its essence yet. There is no its definition in the domestic legislation either. Therefore, there exists certain terminological confusion between the concepts of brand, trademark, and brand name in some studies. Objectives The objective is to consider main problems concerning the definition of essence of a brand. Methods I have analyzed the most important methods of brand valuation in the Russian and foreign practice. Results I prove that the optimum methods of banking brand valuation are the income approach methods. Among them, I distinguish the method of analysis of brand strength and determinants of demand. The essence of the method consists in defining a brand index by ranking the determinants of demand for banking services and recording the extent of influence of a brand on these factors. Then the index is applied to various bases (revenue, profit, cash flows, etc.) to account for the value of the bank brand, and is discounted. Conclusions and Relevance I offer a unique view at the development of the banking brand valuation method, which allows considering its specific features.
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