HEAT! A Bank Health Assessment Tool

Author/Editor:

Li L Ong ; Phakawa Jeasakul ; Sarah Kwoh

Publication Date:

August 9, 2013

Electronic Access:

Free Full text (PDF file size is 1068 KB).Use the free Adobe Acrobat Reader to view this PDF file

Link to data for this title(ZIP file size is 1343 KB).

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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).

Series:

Working Paper No. 13/177

Subject:

English

Publication Date:

August 9, 2013

ISBN/ISSN:

9781484385227/1018-5941

Stock No:

WPIEA2013177

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

20

Please address any questions about this title to publications@imf.org