Archive: April 2018

Balance Sheet Cash Flow: A Guide to Liquidity

While earnings and capital are still the primary metric used to judge bank performance and measure the attractiveness of a bank’s stock price, a growing wave of investors focus on cash. Cash levels help reveal the financial strength and resources of a bank, while cash flow indicates the generation of…

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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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Earnings Returns Forecast a Banking Crisis

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 “E” earnings returns as a component of its CAMEL ranking system and why it is valuable and important…

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Margins as a Measurement of Management: The M 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 margins as a component of its CAMEL ranking system and why it is valuable and important to monitor. The…

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Adequacy of Capital: The A 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 the adequacy of bank capital as a component of its CAMEL ranking system and why it is valuable…

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