{
  "title": "HEAT! A Bank Health Assessment Tool",
  "publication": "IMF Working Papers, August 9, 2013",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/heat-a-bank-health-assessment-tool-40872",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/heat-a-bank-health-assessment-tool-40872",
  "overlayPath": "/en/publications/wp/issues/2016/12/31/heat-a-bank-health-assessment-tool-40872/index.md",
  "summary": "Developments during the global financial crisis have highlighted the importance of differentiating across financial systems and institutions.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Developments during the global financial crisis highlighted the importance of differentiating across financial systems and institutions.\n- 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.\n- 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.\n- Evidence in the paper suggests that the BHI is useful for a first-pass identification of bank soundness conditions.\n- 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)."
    },
    {
      "heading": "Bank Health Index (BHI) and HEAT! tool",
      "content": "- BHI: proposed as a simple measure of bank soundness for preliminary, peer-relative analyses.\n- HEAT!: automated spreadsheet templates accompany the methodology to operationalize the BHI for users with access to BankScope, Bloomberg and/or SNL."
    },
    {
      "heading": "Key findings and focus areas",
      "content": "- The tool and index focus on identifying bank soundness conditions across:\n  - asset quality\n  - capital adequacy\n  - leverage\n  - liquidity\n  - earnings\n  - loan portfolio and Nonperforming loans\n- Intended for use in assessments of commercial banks, financial institutions, and Global systemically important banks to inform financial sector policy and analysis."
    },
    {
      "heading": "Policy relevance and use",
      "content": "- Designed to support preliminary identification of vulnerabilities at individual banks to inform policy decisions in financial stability work.\n- Useful for cross-bank and peer comparisons as part of broader supervisory and stability assessments."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Authors: Li L Ong, Phakawa Jeasakul, Sarah Kwoh\n- Date: August 9, 2013\n- Series: Working Paper No. 2013/177\n- Issue: 177\n- Volume: 2013\n- Pages: 20\n- DOI: https://doi.org/10.5089/9781484385227.001\n- Stock No: WPIEA2013177\n- ISBN: 9781484385227\n- ISSN: 1018-5941\n- Subjects: Bank soundness; Banking; Commercial banks; Financial institutions; Financial sector policy and analysis; Global systemically important banks; Loans; Nonperforming loans\n- Keywords: asset quality; bank health; bank Health Assessment Tool; Bank Health Index; bank soundness; capital adequacy; Commercial banks; earnings; financial statements data; Global; Global systemically important banks; group of bank; HEAT!; heatmap; leverage; liquidity; loan portfolio; Loans; Nonperforming loans; WP\n\nIMF Working Paper: \"HEAT! A Bank Health Assessment Tool\", Li L Ong, Phakawa Jeasakul, Sarah Kwoh, August 9, 2013.\n\n---\n\n Content in this bundle\n\n- wp13177\n  - wp13177 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp13177 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/heat-a-bank-health-assessment-tool-40872"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/31/heat-a-bank-health-assessment-tool-40872/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/heat-a-bank-health-assessment-tool-40872/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/31/heat-a-bank-health-assessment-tool-40872/bundle-manifest.json)",
    "Authors: Li L Ong, Phakawa Jeasakul, Sarah Kwoh",
    "Published: August 9, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484385227.001",
    "Developments during the global financial crisis 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.",
    "Evidence in the paper 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).",
    "BHI: proposed as a simple measure of bank soundness for preliminary, peer-relative analyses.",
    "HEAT!: automated spreadsheet templates accompany the methodology to operationalize the BHI for users with access to BankScope, Bloomberg and/or SNL.",
    "The tool and index focus on identifying bank soundness conditions across:",
    "Intended for use in assessments of commercial banks, financial institutions, and Global systemically important banks to inform financial sector policy and analysis.",
    "Designed to support preliminary identification of vulnerabilities at individual banks to inform policy decisions in financial stability work.",
    "Useful for cross-bank and peer comparisons as part of broader supervisory and stability assessments.",
    "Authors: Li L Ong, Phakawa Jeasakul, Sarah Kwoh",
    "Date: August 9, 2013",
    "Series: Working Paper No. 2013/177",
    "Issue: 177",
    "Volume: 2013",
    "Pages: 20",
    "DOI: https://doi.org/10.5089/9781484385227.001",
    "Stock No: WPIEA2013177",
    "ISBN: 9781484385227",
    "ISSN: 1018-5941",
    "Subjects: Bank soundness; Banking; Commercial banks; Financial institutions; Financial sector policy and analysis; Global systemically important banks; Loans; Nonperforming loans",
    "Keywords: asset quality; bank health; bank Health Assessment Tool; Bank Health Index; bank soundness; capital adequacy; Commercial banks; earnings; financial statements data; Global; Global systemically important banks; group of bank; HEAT!; heatmap; leverage; liquidity; loan portfolio; Loans; Nonperforming loans; WP",
    "**_wp13177**"
  ],
  "related": [
    {
      "title": "_wp13177",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2013/_wp13177.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2013/_wp13177.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2013/_wp13177.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/31/heat-a-bank-health-assessment-tool-40872/index.md",
    "json": "/en/publications/wp/issues/2016/12/31/heat-a-bank-health-assessment-tool-40872/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/31/heat-a-bank-health-assessment-tool-40872/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T15:24:34.469Z"
}