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HEAT! A Bank Health Assessment Tool

Author

Listed:
  • Ms. Li L Ong
  • Mr. Phakawa Jeasakul
  • Miss Sarah Kwoh

Abstract

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).

Suggested Citation

  • Ms. Li L Ong & Mr. Phakawa Jeasakul & Miss Sarah Kwoh, 2013. "HEAT! A Bank Health Assessment Tool," IMF Working Papers 2013/177, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2013/177
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=40872
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    References listed on IDEAS

    as
    1. World Bank & International Monetary Fund, 2005. "Financial Sector Assessment : A Handbook," World Bank Publications - Books, The World Bank Group, number 7259.
    2. International Monetary Fund, 2012. "Spain: Financial System Stability Assessment," IMF Staff Country Reports 2012/137, International Monetary Fund.
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    Cited by:

    1. International Monetary Fund, 2015. "Costa Rica: Selected Issues and Analytical Notes," IMF Staff Country Reports 2015/030, International Monetary Fund.
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    3. Mr. Nicolas R Blancher & Ms. Srobona Mitra & Mrs. Hanan Morsy & Mr. Akira Otani & Tiago Severo & Ms. Laura Valderrama, 2013. "Systemic Risk Monitoring ("SysMo") Toolkit—A User Guide," IMF Working Papers 2013/168, International Monetary Fund.

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