Bank CAMELS
Bank safety ratings based upon financial institutions’ Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, and Sensitivity (CAMELS)

Protect your money. Avoid weak banks

May 23, 2020 |  Categories:  Bank Safety Rating  

Hundreds of banks failed during the Great Recession period, with 157 in 2010 alone.  Given the current economic stress, many banks will fail for sure.


If your bank fails, you may lose money indirectly, even with FDIC insurance, and will surely suffer the headache of disruptions: 



  1. Once a bank is closed, the accrual of interest ceases on all accounts.  Even after your account is established with the acquiring bank, it is likely your new rate will be lower.

  2. Any outstanding checks or payment requests presented after a bank failure will be returned unpaid.  Resolving issues arisen from the interruption is your responsibility.

  3. It might take a few days for you to get your insured portion back after a bank is closed.

  4. It will take a lot longer, sometimes even years for you to get your uninsured portion back.  Even worse, you may not be able to get the full amount.

  5. Safe deposit box holders, business owners, trusts, and fiduciaries may all experience different disruptions. 


Check the FDIC webpage for details.  https://www.fdic.gov/consumers/banking/facts/payment.html


Using different machine learning technologies, we predict the likelihood of bank failures through an intuitive rating system of 1 to 5, with 1 being the worst and 5 the best.  Our ratings cover all the FDIC guaranteed financial institutions.  The purpose is to help you identify weak financial institutions so you can avoid the headache of dealing with bank closings in the future.


Using data up to Q4 2019, only 5 banks were assigned the worst rating of 1.  As of today, two of them have failed (Q1 2020 data is not available yet)For banks with the worst rating, we recommend depositors to move away from them as soon as possible. 



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