Archive: February 2018

IDC’s Remarkable Record - Updated for 4th Quarter 2017 ranks

“IDC has a remarkable track record of identifying deteriorating or improving performance months, and sometimes years, before it becomes apparent to other ranking companies,” as stated on the Washington State Department of Financial Institutions website and as displayed on IDC Financial Publishing, Inc.’s website.  The following review of IDCFP rankings…

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ROE Compared to COE Still the Best Indicator of Value

“The linear relationship between bank stock price times book value compared to ROE less COE, as illustrated below, testifies to the unique value of bank ROE less COE as one measurement of management as the M in CAMEL, the IDCFP summary rank of financial ratios as to the safety and…

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The Early Warning Signal of a Coming Banking Crisis

Components of IDCFP’s CAMEL, Which Forecast the 2008 Economic Crisis in Banking as Early as 2005, Provide an Early Warning System in Coming Years This article on “The Early Warning Signal of a Coming Banking Crisis” summarizes with recent individual articles on the components of CAMEL: 1. At the low…

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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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