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HEAT! A Bank Health Assessment Tool
Author:
Ms. Li L Ong
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Mr. Phakawa Jeasakul
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https://orcid.org/0000-0002-2071-7987
, and
Miss Sarah Kwoh
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Series:
IMF Working Papers
Volume/Issue:
Volume 2013: Issue 177
Language:
English
Publication Date:
09 Aug 2013
DOI:
https://doi.org/10.5089/9781484385227.001
ISBN:
9781484385227
ISSN:
1018-5941
Pages:
20
Keywords:
WP; bank Health Assessment Tool; group of bank; financial statements data; bank health; loan portfolio; asset quality; Bank Health Index; bank soundness; capital adequacy; earnings; HEAT!; heatmap; leverage; liquidity; Commercial banks; Nonperforming loans; Loans; Global systemically important banks; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Developments during the global financial crisis have highlighted the importance of differentiating across financial systems and institutions. Assessments of financial stability have increasingly considered the characteristics of individual banks within a financial system, as well as those with significant international reach, to identify vulnerabilities and inform policy decisions. This paper proposes a simple measure of bank soundness, the Bank Health Index (BHI), to facilitate preliminary analyses of individual financial institutions relative to their peers. The evidence suggests that the BHI is useful for a first-pass identification of bank soundness conditions. Automated spreadsheet templates of the bank Health Assessment Tool (HEAT!) are provided for users with access to the BankScope, Bloomberg and/or SNL database(s).
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund