Archive: February 2020

Our Remarkable Record Predicting Bank Failure and Recovery

Updated for 4th Quarter 2019 ranks IDCFP’s Record in History From 1990 to 2018, there were 1,419 failures of banks. Of these, 90% (1,271 banks) were ranked less than 125 by IDC Financial Publishing (IDCFP) up to 17 months before failure. Further, 73% (1,033 banks) were rated less than 125 by IDCFP…

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Who Uses IDC Financial Publishing’s Ranks and Why?

Our Customers Many institutions rely on IDC Financial Publishing (IDCFP) CAMEL rankings to do business. This includes financial institutions that buy and sell brokered CDs, insurance companies, state and local governments, federal agencies, private companies, as well as individual banks, savings institutions and credit unions. Brokers trading certificates of deposit, registered investment…

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Negative Balance Sheet Cash Flow Leads to Liquidity Risk

Liquidity risk occurs when an institution’s loan delinquency exceeds 4% of its total loans and its balance sheet cash flow is substantially negative. Balance sheet cash flow is operating cash flow minus financial cash flow. Operating cash flow equals the annual change in retained earnings less the annual change in…

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