How to tell if your Bank is Healthy
This is unprecidented times in the Banking Industry. It seems like every day that we read about another bank failure. How can you research your bank to see if it is healthy. Go to www.fdic.gov and search for the Uniform Banking Performance Report (UBPR) There you can input the name of your bank and get all of the financial data that is supplied in their quarterly call report. Go to page 15 and look at their Tier 1 Leverage Ratio. A well capitalized bank’s ratio should be at least 6% or better. Their Risk Based Capital Ratio should be at least 10%. If your bank doesn’t meet these requirements, then they are not among the healthiest banks. However, that doesn’t mean that you shouldn’t have an account with that bank. Just make sure that you stay within your FDIC coverage limits and that the bank’s products meet your needs.
Happy Banking!!
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