A few weeks ago, we highlighted our estimates for DTC brokered CDs outstanding. We have revised our forecast, to an increase of 43% from the $400 billion balance at the end of November 2019, to reach $570 billion by year-end 2022, an average increase of $14 billion per quarter. As a…
The Number of Financial Institutions Issuing Brokered CDs Continues to Grow The number of institutions issuing brokered CDs has grown significantly since 2017. Banks, savings institutions and credit unions rose from a plateau of 1,300 in 2017 and increased to 1,638 in the 3rd quarter of 2019. However, the rise in the…
ROE vs. COE is the Best Indicator of Bank Stock Value IDC Financial Publishing (IDCFP) measures relative profitability of bank holding companies by comparing the IDCFP return on tangible equity (NOPAT ROE) to our definition of the cost of equity (COE). Margin between ROE and COE (included in the “M” in…
Updated for 3rd 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…
IDC Financial Publishing (IDCFP) utilizes the acronym CAMEL to represent the financial ratios used to evaluate the safety and soundness of commercial banks, savings institutions and credit unions. This article explains how we use liquidity as a component of our CAMEL rating, and why it is valuable and important to monitor. Liquidity…
