How IDC Financial Publishing Predicted a Financial Crisis

See how IDC Financial Publishing predicted the financial crisis of 2008 by using a specific category of institutions and our proprietary set of data analysis. Download a copy of our White Paper here.

A decade after the financial crisis, the financial industry is on more solid ground. There is great opportunity for growth in financial institutions, but we are very mindful of the past and potential risk. It is more important than ever to understand how an institution measures up. Without such a resource, institutions or individual depositors are devoid of information that may allow for risk avoidance. This is where IDC Financial Publishing’s institution ranks come in.

Yields on U.S. Treasuries are declining as result of tariffs in 2018 and 2019, and the advent of Covid-19 in 2020. We have also seen a rise this year in institutions ranked below investment grade, and an increase in the value of brokered CDs represented in these institutions, which, when combined, leads to increased risk to CD portfolios.

In our analysis of the 2008 financial crisis, we witnessed a trend in the rank of financial ratios in commercial and savings banks with brokered deposits that became the best indicator of risk leading up to the crisis. This has remained the baseline with which to measure the industry’s recovery in the decade following it. As politics and the effects of Covid-19, both domestic and abroad, continue to influence U.S. economic outcomes, our bank rank analysis remains a benchmark to strategize for success in the future. As in the past, IDCFP ranks are critical for investors going forward to monitor the strength of financial institutions during periods of risk or growth.

For further information or to view our products and services please visit our website www.idcfp.com or contact us at 800-525-5457 or info@idcfp.com.

John E Rickmeier, CFA, President, jer@idcfp.com

Robin Rickmeier, Marketing Director