Archive: February 2018

IDC’s Remarkable Record - Updated for 4th Quarter 2017 ranks

“IDC has a remarkable track record of identifying deteriorating or improving performance months, and sometimes years, before it becomes apparent to other ranking companies,” as stated on the Washington State Department of Financial Institutions website and as displayed on IDC Financial Publishing, Inc.’s website.  The following review of IDCFP rankings…

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Benefits of High Market Capitalization to Common Equity

The benefits of a high market capitalization to common equity are twofold. As an example, one benefit is Western Alliance Bancorp (WAL) sells at a market value equal to 2.9-times equity due to a spread of ROE less COE of 11.0%. The second benefit is a high ROE generates a…

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The Early Warning Signal of a Coming Banking Crisis

Components of IDCFP’s CAMEL, Which Forecast the 2008 Economic Crisis in Banking as Early as 2005, Provide an Early Warning System in Coming Years This article on “The Early Warning Signal of a Coming Banking Crisis” summarizes with recent individual articles on the components of CAMEL: 1. At the low…

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Liquidity Risk - - The “L” in CAMEL

IDC Financial Publishing, Inc. (IDCFP) uses the acronym CAMEL and its component financial ratios to evaluate the safety and soundness of commercial banks and savings institutions. This article explains how IDCFP uses liquidity as a component of its CAMEL ranking system and why it is valuable and important to monitor. Liquidity…

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