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November 20, 2008
Institutional Risk Analytics has added several new features to The IRA Bank Monitor, including:
** WatchList: A personal watch list for each user to
track up to 100 banks, thrifts or bank holding companies,
** Short and long-term equity volatility metrics calculated by IRA
for publicly traded banks, and
** A redsigned Start Page that gives
you quick access to IRA's proprietary bank screening tools.
In addition,
IRA has begun beta tests of a new pro forma M&A tool that allows users
to put together two banks in a "what if" merger scenario. The pro
forma tool combines the subsidiary banks of the two subjects selected and
displays the results in a hypothetical balance sheet and income statement,
complete with all of the IRA performance and risk metrics calculated for the
"what if" institution.
Any
bank monitor users who wish to
participate in the beta test of the M&A tool, please contact your sales
representative directly. New users may register on the IRA web site and request a Bank
Monitor trial.
Some of the new pre-formulated screens included in
The IRA Bank Monitor include:
** Troubled Banks: The list
of banks that failed one of the three capital adequacy tests established
by regulation,
** Screens for upside, downside and other business
cases searches, and
** IRA's proprietary Basel II risk calculator, which
allows you to search for banks based on criteria such as defaults, loss given
default, weighted average maturity or unused credit lines.
All of
these screens are also included in the "How's My Bank" IRA Bank Cart tool, which allows users to
purchase annual subscriptions to four quarterly profiles for an individual bank
or group of banks. Cart users can maintain a portfolio of institutions in
their cart profile and view them as often as needed via the internet.
"We think its time for
analysts of all sorts to start sharpening their spears and to be doing their homework when it comes to
banks," says IRA Managing Director Christopher Whalen. "The financial
crisis is far from over, but a lot of very interesting opportunities will
be present in 2009 and beyond. The challenge to
investment bankers and private equity investors is picking the winners
among both public and privately held banks. We will be continuing to
improve The IRA Bank Monitor to support these and other business case
needs. We really appreciate the feedback we receive from all
of our users and we will be responsive in terms of adding new
features."
Questions? Comments?
IRA Releases Powerful New Screening Tools for the IRA Bank Reports System
October 1, 2008
IRA has released new subscription options to our "How's My Bank?" individual Bank Report
system. These powerful screening tools focus on the
financial safety and soundness fundamentals of the regulated
depository institutions covered by IRA, using "as filed" data from the
Federal Deposit Insurance Corporation and analytical benchmarks from the IRA Bank Monitor.
Designed for professional
users such as fund managers, corporate treasurers, institutional
counterparties, legal firms and financial planners who need to manage and/or
advise on asset allocation and selection of depositories, we offer
this professional upgrade option to our Bank Report system to help you
locate those banks of interest to your business case needs.
These powerful new optional filters within the IRA Bank Report
system are accessed via the "How's My Bank" shopping cart
and include:
FIND BANKS BY SIZE:
** Large Asset Depositories over $10 billion, nationwide coverage
** Medium Banks from $1 billion to $10 billion in assets, sorted by state
** Small Banks from $250 million to $1 billion in assets, sorted by state
** Micro Banks under $250 million assets, sorted by state
UPSIDE SEARCH SCREENS:
** "Classic" Operating Profile Banks, nationwide
** "Best of Breed" Banks, sorted by state
** Average to Better Banks. sorted by state
** Viable Elevated Stress Banks., sorted by state
DOWNSIDE SEARCH SCREENS:
** Unprofitable Depository Units, sorted by state
** Moral Hazard Risk Depository Units, sorted by state
** Capital Adequacy Test Failures, sorted by state
These analytical screening tools are available for $500.00 per year as an optional subscription service within the "How's My Bank" shopping cart. These screening tools deliver lists of banks meeting conditional filter criteria that you can then add to your shopping cart to purchase the individual report.
Questions? Comments? info@institutionalriskanalytics.comIRA Launches Bank Stress Index for All FDIC Insured Depository Institutions
September 15, 2008
Institutional Risk Analytics has added a powerful new analytics tool to The IRA Bank Monitor, the Banking Industry Stress Index. The index represents an explicit survey of all FDIC-insured financial institutions and includes equally weighted factors such as:
* Profitability
* Lending Default Experience
* Capital Adequacy
* Loan and Unused Commitment Exposure
* Operational Efficiency
The above factors are calculated for each individual institution and are then are brought together into an overall index for the entire US banking industry where 1995 = 1. Numbers > 1 evidence stress above that level. Each index component can have a maximum stress value of 100 corresponding to a two order of magnitude shift in the underlying computations versus the industry index for the period.
Click here to see the Banking Industry Stress Index
Subscribers to The IRA Bank Monitor and the IRA Bank reports may compare individual bank index values with the industry index and each sub-indice. For example, the profile for Countywide Bank FSB, an indirect subsidiary of Bank of America (NYSE:BAC), for Q2 2008 is shown below:
| Countrywide Bank, FSB |
Overall |
ROE |
Loan Defaults |
Capital |
Lending Capacity |
Efficiency |
|
Stress Index |
21.5 |
> 100 |
4.4 |
1.1 |
1.0 |
1.1 |
|
Industry Benchmark |
1.4 |
1.8 |
2.1 |
1.0 |
1.2 |
1.1 |
Source: FDIC/The IRA Bank Monitor |
||||||
When the index value for a particular bank is above the industry index value, the figure is shown in red. Note that ROE degradation and loan defaults are currently the factors most significantly affecting the value of both Countrywide and the industry as a whole.
Questions? Comments? info@institutionalriskanalytics.com
Operational Risks to Global Financial Institutions: PRMIA DC Chapter Hosts Event
August 26, 2008
On Monday, September 22, 2008, IRA co-founder Christopher
Whalen will participate as MC in an important event hosted by the Washington DC
chapter of Professional Risk Managers International Association. Entitled
"Perspectives on Operational Risks to Global Financial Institutions," this
day-long event focused on operational risk is being held at the
L. William Seidman Center, 3501 Fairfax Drive, Arlington, VA 22226.
This event is part of PRMIA's Global Event Series and is being held
in partnership with the Federal Deposit Insurance Corporation (FDIC) &
the Office of Thrift Supervision (OTS). The event is free of charge,
but seating is limited, so register ASAP. For additional details or to
register, please click the link below:
PRMIA: Perspectives on Operational Risks
to Global Financial Institutions
Keynote Speaker:
Ali Samad-Khan,
Towers-Perrin
Panelists:
Hans Cobben, Group Vice President, SunGard
David Cox, Director of Research, Deloitte
Victoria Garrity, Senior Quantitative Analyst, FRB Boston
Hugh Kelly, Principal, KPMG
Andrew Leonard, SVP, Fannie Mae
Gary Owen, SVP, Citigroup
Celina Realuyo, Professor, National Defense University
James Routh, Chief Information Security Officer, DTCC
Ani Sanyal, Consulting Director, SunGard
Al Seivold, Senior Examination Specialist, FDIC
James Tunkey, Managing Director, IONASIA
Michael T.
Yamamoto, Managing Vice President, Capital One
Hugh Kelly, Principal, KPMG
Jan Voigts, Federal Reserve Bank of New York
"IRA is pleased to volunteer our time and resources to
support PRMIA's education programs," says Whalen, who is co-regional director of PRMIA's DC chapter. "Speaking on behalf of
the DC steering committee of PRMIA, we are very grateful to the speakers, the FDIC and the OTS,
for making this program possible. We have a very strong
program. Hopefully this event will be useful to both the
audience on September 22nd and the members of the regulatory community who can
access this event through the FFIEC's examiner education office and its member agencies."
Questions? Comments?
IRA Credit Conditions Index Identifies 8% of All US Banks Under Stress
July 28, 2008
The preliminary work completed by Institutional Risk Analytics regarding our new credit conditions index puts roughly 8% of all FDIC insured institutions in the stressed category as of Q1 2008 and roughly that same number headed in that direction. That 8% of all US banks translates into over 700 institutions as of Q1 2008. At the end of March, the FDIC had 90 institutions on its troubled institution list.
"The degree of worry regarding the magnitude and duration of the corrections being experienced in the U.S. financial industry has become increasingly acute," notes IRA CEO Dennis Santiago in an upcoming white paper on credit issuance capacity impairment. "These worries lead to speculation and broad brush guessing by professionals struggling to work with increasingly opaque data. These speculations then are communicated to journalists, who drive public fears and increase the probabilities of worst case scenario manifestation. But we must emphasize that while the number of institutions under stress is clearly rising, most banks remain stable."
IRA provides analytical tools and risk indicators for all US
banks using data from the FDIC and other regulators. From single-institution
profiles to specialized reports such as the Compendium of Bank Risk to powerful analytical tools
that survey the entire banking industry such as The IRA Bank Monitor, IRA gives you the ability to
understand the financial performance of a bank and compare that
performance profile to its peers.
For additional
information, please register on the IRA web site.
Questions? Comments?
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