Banks are rated by a lot of agencies. If you Google "bank rating," there are a number of different services rating banks, including Bankrate, Bauer Financial, Creative Investment Research, Fitch, IDC Financial, Moody's, Sheshunoff Information Service, Veribank. A veritable smorgasbord of rating services, available for a fee. They make their money, um...rating banks. Duh.
However, the crux of it all is that those services are using financial statements combined with on-site examinations conducted by supervisory regulatory agencies. In the U.S., the official supervisory regulatory agencies include the Federal Reserve, the Office of the Comptroller of the Currency, the National Credit Union Administration (NCUA), the Farm Credit Administration, and the Federal Deposit Insurance Corporation (FDIC).
The backbone of a bank's rating is the CAMELS rating. (You really can't make this stuff up). The components of a bank's condition (CAMELS rating) are:
· (C)apital adequacy
· (A)ssets
· (M)anagement Capability
· (E)arnings
· (L)iquidity (also called asset liability management)
· (S)ensitivity (sensitivity to market risk, especially interest rate risk)
Ratings are given from 1 (best) to 5 (worst) in each of the above categories. The compilation of the ratings gives the public an indication of the stability of bank A or bank B, etc.
With banking, as in the desert, ride the CAMELS.
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Finance: What is a Routing Number?20 Views
finance a la shmoop what is a routing number of a routing number is so that
wired monies can you know like find their way home yeah think of them like [maze game]
the smell of worm to Canadian geese when you write a check or wire money or do [worms and Canadian geese]
almost anything financial these days the dough is given a kind of custom [card getting swiped]
electronic signature and basically a number a big fat one like this one yeah
and the numbers mean specific things like on a paper check the routing of the
dough you're paying to Lana sim for um you know services rendered comes in two [breakdown of a check]
pieces there's a nine digit routing number aka our TN aka routing transit
number which is here and that number is then mapped to your specific account
number which is here why did you need this number why do you need it at all
well when you suddenly see an item on your bank statement for a payment of [bank statement document]
$350 to Yamaka supply limited and you're about as Jewish as the Pope well you may [Pope Francis in the Vatican]
want your bank to be able to track that sucker down because it was fraud on your
account I'd like to be able to prove that you were not in fact the one who
authorized that payment so your bank can refund you you know your hard-earned
cash all right there we go much better yeah I am
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