ROE vs. COE is the Best Indicator of Bank Stock Value

ROE vs. COE is the Best Indicator of Bank Stock Value IDC Financial Publishing (IDCFP) measures relative profitability of bank holding companies by comparing the IDCFP return on tangible equity (NOPAT ROE) to our definition of the cost of equity (COE). Margin between ROE and COE (included in the “M” in…

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The Risk Negative Rates Pose to the U.S. Banking System

For years, the U.S. has witnessed negative interest rates overseas while our country seemed impervious to this trend. Now there is legitimate fear this could become a reality here.1 Over last six years, the European banking system has been crippled by reduced profits and increasing defaults. When negative rates remain consistent…

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Who Uses IDC Financial Publishing’s Ranks and Why?

Download a copy of IDC Financial Publishing’s, How to Predict a Financial Crisis. Our Customers Many institutions rely on IDC Financial Publishing (IDCFP) CAMEL rankings to do business. This includes financial institutions that buy and sell brokered CDs, insurance companies, state and local governments, federal agencies, private companies, as well as individual…

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Negative Balance Sheet Cash Flow Leads to Liquidity Risk

Liquidity risk occurs when an institution’s loan delinquency exceeds 4% of its total loans and its balance sheet cash flow is substantially negative. Balance sheet cash flow is operating cash flow minus financial cash flow. Operating cash flow equals the annual change in retained earnings less the annual change in growth-producing…

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