IDC provides a thorough analysis of financial ratios, resulting in a one-number summary rating computed for each financial institution in the country that reports to agencies of the Federal government. Ratings range from 1, the lowest, to 300, the top grade attainable. The result is a quick, at-a-glance financial strength assessment. This summary rank allows simple and direct comparison of the safety and soundness of any bank, holding company, or credit union with any (or all) others.
IDC’s ranks of financial ratios also offer a unique opportunity for long-term risk management in institutions with investments in bank securities, such as brokered CDs, inter-bank loans or other structured products, with maturities 3 months or longer. A rank of 125 or higher has been determined by many users of IDC ranks as the investment grade benchmark. From 1989, 90% of banks that failed were ranked less than 125 by IDC up to 17 months before failure, and 73% were ranked less than 125 up to 29 months before collapse.
Within our bank rating services, IDC can provide a unique comparison of ratings of bank subsidiaries with the parent holding company available through our online portal. This allows the subscriber to view the quality and strength of the parent holding company relative to the bank subsidiaries, in addition to the ability to compare individual bank ratings.
Bank, Holding Company, and Credit Union ratings and supporting financial ratios can be viewed through IDC's online portal, in a management review for a single institution, a components of rank report or through a report of the history of a financial institution.
IDC refines the financial ratios to reflect additional financial data released by the regulators. Our rating is important for at-a-glance assessment, but more important is the ability we give you to determine the financial institution's strength and weaknesses and how each ratio impacts the summary rating.
