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.
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.
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.
John E Rickmeier, CFA