IDC’s CAMEL Safety Ratings Explained: M for Margins

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. In this article we discuss margins as a measure of management, the “M” component of our CAMEL ranking, and why it is important…

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IDC’s CAMEL Safety Ratings Explained: A for Adequate Capital

IDC Financial Publishing (IDCFP) uses the acronym CAMEL to represent the financial ratios we use to evaluate the safety and soundness of commercial banks, savings institutions and credit unions. This article explains how we measure adequacy of capital in banks and savings institutions as a component of our CAMEL ranking, and…

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IDC’s CAMEL Safety Ratings Explained: C for Capital Requirements

IDC Financial Publishing, Inc. (IDCFP) uses the acronym CAMEL to represent the financial ratios we use to evaluate the safety and soundness of commercial banks, savings institutions and credit unions. This article explains how we use the capital requirements ratios in banks and savings institutions as a component of its…

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IDC’s Remarkable Record Predicting Bank Failure and Recovery

Updated for 4th Quarter 2018 ranks Since 1990, there have been 1,419 failures of banks and savings institutions. Of these, 90% (1,271 banks) were ranked less than 125 by IDCFP up to 17 months before failure. Further, 73% (1,033 banks) were rated less than 125 by IDCFP up to 29 months…

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