US Banking Sector Riskier Than Peer Group
The US banking sector remains riskier than its peer group on most measurements, according to Standard & Poor’s. Excerpts from Banking Industry Country Risk Assessment (BICRA): U.S. We have reviewed the banking sector of the United States of America (AA+/Negative/A-1+) following the recent affirmation of the U.S. sovereign rating. We rank the U.S. in BICRA group [...]

The US banking sector remains riskier than its peer group on most measurements, according to Standard & Poor’s.

Excerpts from  Banking Industry Country Risk Assessment (BICRA): U.S.

We have reviewed the banking sector of the United States of America (AA+/Negative/A-1+) following the recent affirmation of the U.S. sovereign rating. We rank the U.S. in BICRA group ‘3′, along with countries such as South Korea, Denmark, Chile, New Zealand, and the U.K.

US BICRA

Our criteria define the BICRA framework as one “designed to evaluate and compare global banking systems.” A BICRA analysis for a country covers rated and unrated financial institutions that take deposits, extend credit, or engage in both activities. The analysis covers the entire financial system of a country while considering the relationship of the banking industry to the financial system as a whole. A BICRA is scored on a scale from 1 to 10, ranging from what Standard & Poor’s views as the lowest-risk banking systems (group ‘1′) to the highest-risk (group ‘10′).

The BICRA comprises two main areas of analysis–economic risk and industry risk–on which the U.S. scores ‘3′ and ‘4′, respectively.

Our economic risk score of ‘3′ reflects our opinion that the U.S. has “very low risk” in “economic resilience” and “intermediate risk” in terms of “economic imbalances” and “credit risk in the economy,” as our criteria describe those terms.

Our industry risk score of ‘4′ for the U.S. is based on our opinion that the country faces “intermediate risk” in its “institutional framework,” “high risk” in its “competitive dynamics,” and “very low risk” in “systemwide funding.”

Technorati Tags: banking-system, U.S. banks

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here