With the recession in the world markets, most people are scared of putting their money in banks. It is understandable, after all, as banks are starting to devalue left and right, some even closing and going into bankruptcy. Even the Central Bank, says that 19 of the largest banks today will lose as much as $600 billion in monetary value. Thankfully there are websites that check bank ratings for you and offer bank report cards for a fee. They will even give you email reports and scam reports that tell you whether that bank is actually a bank scam. These institutions will also offer links on the banks in your area and the bank email for more corporate info. Several of these sites are included in this article.
- BauerFinancial. BauerFinancial is a bank report card agency that offers reports banks in all states. Their ranking system is a star system wherein a one star rating means a troubled bank, two stars mean a problematic bank, three stars mean an adequate bank, a three and a half rating means a good bank. The four star rating, however, means an excellent bank and a five star rating means a superior bank. All of their rankings come from a compilation of data reported by federal regulators. In most cases, banks are subjected to a minimum requirement of a liquidity of 4% of their capital. Both four star and five star ratings are included in their Monthly BauerFinancial Recommended Report. All reports have a fee of $10, and $43 for the total report. Their website is located at bauerfinancial.com
- Veribanc. Veribanc has different kinds of ratings. The Star System, and the Colors System. The Star System has three stars, a one star, two star, and three star rating, with three being the highest. A three star rating means that a bank has more than 5% of their financial capital in liquidity, and they don’t have any trouble with the Federal Reserve. A two star rating means that the bank may have losses, but are non substantial with regard to their profit. A one star rated bank means that it has 3% of its financial capital in liquidity, but this is exceeded by their bad loans, while meeting the other criteria of the above rankings. Their Colors System has three different levels, the Green Ranking, the Yellow Ranking, and the Red Ranking. The Green Ranking means that they posted a huge profit in the past quarter, while having as much as 5% of their capital in liquidity. A Yellow Ranking means that it only gained a small profit or a small loss. If there was a loss, it was not enough to erode the institution’s stability. A Red Ranking, however means a huge loss in profit or that its liquidity is significantly lower than its total solid assets. Their reports come at $10 per institution and $5 for every other institution made in the same phone call. Their website is at veribanc.com
Although the threat of bank closures looms over us, there really isn’t much we can do but trust banks as they can keep our money in the safest possible way. Our homes, though they may have anti-theft alarms, may be burgled, but a bank is much harder to steal from. To be sure, however, it is suggested that you get a bank structure card and a bank report card for a specific bank from these and other institutions so you know where your money should be deposited, and if your investment will be safe and sound.