Archive: January 2020

High Leverage that Yields Negative Earnings Creates Risk

At IDC Financial Publishing (IDCFP), the acronym CAMEL represents the financial ratios we use to evaluate the safety and soundness of commercial banks, savings institutions and credit unions. The "E" component of our CAMEL Rating represents institutions with substantial negative earnings due to leverage. Banks with a low return from operations,…

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The Critical Margins Used to Measure Management in Banks

A Specific Category of Banks Creates a Superior Forecast At IDC Financial Publishing, (IDCFP), we focus on commercial and savings banks with brokered deposits as the best group of banks to analyze risk. Historically, institutions with brokered deposits* held the vast majority of all domestic liabilities and equity capital. This was…

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Determine Risk by Assessing Adequacy of Capital

A Specific Category of Banks Creates a Superior Forecast At IDC Financial Publishing, (IDCFP), we focus on commercial and savings banks with brokered deposits as the best group of banks to analyze risk. Historically, institutions with brokered deposits* held the vast majority of all domestic liabilities and equity capital. This was…

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Capital Requirements Measure Safety and Soundness of Banks

A Specific Category of Banks Creates a Superior Forecast At IDC Financial Publishing, (IDCFP), we focus on commercial and savings banks with brokered deposits as the best group of banks to analyze risk. Historically, institutions with brokered deposits* held the vast majority of all domestic liabilities and equity capital. This was…

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