Individual Ranking of Banks
Standard Ranking (S&P, Fitch etc.) is common ranking practice -but it cannot match all
your requirements to a Bank!
Up until end of 2007 many banks had the untouchable reputation that there is no doubt about that they are the best experts regarding safety. If
anybody likes to ask for counterparty risk then it was always the bank who declined a request for funds due to reasons of reliability. But now the
customer should also take this position, it may be even a matter of his existence. Doing business with the wrong bank may lead to total loss of
liquidity. Easier told as done - but how how can one rate his current and/or desired bank?
The one who has the money is right. This anrupt conclusion was in the past (and is mostly still fact) the lived understanding of most heads of
individuals which have the power of dealing with money - and they do it as it would be their own money. That’s obviously the reason for “a golden
key can open any door”. Plot-wise this money is not their property, they just administer it. In fact they have the same amount as liabilities by
collecting money from other people / organsations. That’s not the same as it is for every corporate outside the banking business. It’s just a transfer
from one person to the other and getting a margin for.
Rating of a Bank
Before you can make a rating it is important to get a customer-supplier view, free of emotions and all the time critical challenged whether the
earned experience is correct resp. whether they are still actual. That’s the reason for the (allowedly little bit provocating) introducing explanations
which should make someone aware of trust in overall simple things.
Example
The bank to be rated has good or very good rating at the well known rating agencies Standard & Poors, Moody's or Fitch.
1.
Is this rating for a specific bond or really a overall credit-rating?
2.
Is the rating for the whole banking organsiation / group or is it just for a part of it, e.g. a single country or segment?
3.
How old is the rating? If it is older than a year you should better renounce it.
4.
If you buy any product from bank, is it really from you bank and not from another one, rated very much worser? Remind on practical
examples, e.g. Credit Suisse vs. Lehman Brothers? They sold Lehman products, but the customer thought that ge made an investment at
Credit Suisse. In fact, the customer lost everything when Lehman went bankcrupt suddenly over night!
That means, is the rating in fact what you are interested for, i.e. does it belongs to your business? If you don’t have a current and important,
suitable rating, but also for every other rating for fully transparent analysis, you see below a proven approach to rate your current or future bank.
Under all circumstances you should make your own personal analysis for a current existing rating. As you can see below, such an
analysis can never be substituted by a general one.
Segmentation
The result should be a cost-benefit analysis (i.e. two dimensions) which is segregated in general criterias, risk and potential. Ideally, a SWOT
analysis was made before.
anybody likes to ask for counterparty risk then it was always the bank who declined a request for funds due to reasons of reliability. But now the
customer should also take this position, it may be even a matter of his existence. Doing business with the wrong bank may lead to total loss of
liquidity. Easier told as done - but how how can one rate his current and/or desired bank?
The one who has the money is right. This anrupt conclusion was in the past (and is mostly still fact) the lived understanding of most heads of
individuals which have the power of dealing with money - and they do it as it would be their own money. That’s obviously the reason for “a golden
key can open any door”. Plot-wise this money is not their property, they just administer it. In fact they have the same amount as liabilities by
collecting money from other people / organsations. That’s not the same as it is for every corporate outside the banking business. It’s just a transfer
from one person to the other and getting a margin for.
Rating of a Bank
Before you can make a rating it is important to get a customer-supplier view, free of emotions and all the time critical challenged whether the
earned experience is correct resp. whether they are still actual. That’s the reason for the (allowedly little bit provocating) introducing explanations
which should make someone aware of trust in overall simple things.
Example
The bank to be rated has good or very good rating at the well known rating agencies Standard & Poors, Moody's or Fitch.
1.
Is this rating for a specific bond or really a overall credit-rating?
2.
Is the rating for the whole banking organsiation / group or is it just for a part of it, e.g. a single country or segment?
3.
How old is the rating? If it is older than a year you should better renounce it.
4.
If you buy any product from bank, is it really from you bank and not from another one, rated very much worser? Remind on practical
examples, e.g. Credit Suisse vs. Lehman Brothers? They sold Lehman products, but the customer thought that ge made an investment at
Credit Suisse. In fact, the customer lost everything when Lehman went bankcrupt suddenly over night!
That means, is the rating in fact what you are interested for, i.e. does it belongs to your business? If you don’t have a current and important,
suitable rating, but also for every other rating for fully transparent analysis, you see below a proven approach to rate your current or future bank.
Under all circumstances you should make your own personal analysis for a current existing rating. As you can see below, such an
analysis can never be substituted by a general one.
Segmentation
The result should be a cost-benefit analysis (i.e. two dimensions) which is segregated in general criterias, risk and potential. Ideally, a SWOT
analysis was made before.
The weighted points are now set in comparison to the total costs. Due to this, a meaningful graphic analyis about the cost-benefits can be made.
regarding a future bank relationship. As an example, the graphs my look like the ones below:
regarding a future bank relationship. As an example, the graphs my look like the ones below:
Qualitative
Economical
Cost-Benefit
With this analysis you are able now to segregate the
expensive ones with poor performance from the ones
with more competitive prices and better offers. You
can now invite the 2 - 3 best banks for a personal
meeting. The bank will now show clear more respect
and makes more concessions, if you show them from
the beginning that you are interested in a very
professional relationship and that you are able to
manage your business well. Because the bank is your
vendor and you her customer. Same like in your
operational business you rely on one of the very most
important points in a business: CONFIDENCE.
expensive ones with poor performance from the ones
with more competitive prices and better offers. You
can now invite the 2 - 3 best banks for a personal
meeting. The bank will now show clear more respect
and makes more concessions, if you show them from
the beginning that you are interested in a very
professional relationship and that you are able to
manage your business well. Because the bank is your
vendor and you her customer. Same like in your
operational business you rely on one of the very most
important points in a business: CONFIDENCE.
Contact us, we would be glad to show you the possible opportunities!
Individual Ranking of Banks
Standard Ranking (S&P, Fitch etc.) is common ranking practice
-but it cannot match all your requirements to a Bank!
Up until end of 2007 many banks had the untouchable reputation
that there is no doubt about that they are the best experts regarding
safety. If anybody likes to ask for counterparty risk then it was always
the bank who declined a request for funds due to reasons of
reliability. But now the customer should also take this position, it may
be even a matter of his existence. Doing business with the wrong
bank may lead to total loss of liquidity. Easier told as done - but how
how can one rate his current and/or desired bank?
The one who has the money is right. This anrupt conclusion was in
the past (and is mostly still fact) the lived understanding of most
heads of individuals which have the power of dealing with money -
and they do it as it would be their own money. That’s obviously the
reason for “a golden key can open any door”. Plot-wise this money is
not their property, they just administer it. In fact they have the same
amount as liabilities by collecting money from other people /
organsations. That’s not the same as it is for every corporate outside
the banking business. It’s just a transfer from one person to the other
and getting a margin for.
Rating of a Bank
Before you can make a rating it is important to get a customer-
supplier view, free of emotions and all the time critical challenged
whether the earned experience is correct resp. whether they are still
actual. That’s the reason for the (allowedly little bit provocating)
introducing explanations which should make someone aware of trust
in overall simple things.
Example
The bank to be rated has good or very good rating at the well known
rating agencies Standard & Poors, Moody's or Fitch.
1.
Is this rating for a specific bond or really a overall credit-rating?
2.
Is the rating for the whole banking organsiation / group or is it
just for a part of it, e.g. a single country or segment?
3.
How old is the rating? If it is older than a year you should better
renounce it.
4.
If you buy any product from bank, is it really from you bank and
not from another one, rated very much worser? Remind on
practical examples, e.g. Credit Suisse vs. Lehman Brothers?
They sold Lehman products, but the customer thought that ge
made an investment at Credit Suisse. In fact, the customer lost
everything when Lehman went bankcrupt suddenly over night!
That means, is the rating in fact what you are interested for, i.e. does
it belongs to your business? If you don’t have a current and
important, suitable rating, but also for every other rating for fully
transparent analysis, you see below a proven approach to rate your
current or future bank.
Under all circumstances you should make your own personal
analysis for a current existing rating. As you can see below,
such an analysis can never be substituted by a general one.
Segmentation
The result should be a cost-benefit analysis (i.e. two dimensions)
which is segregated in general criterias, risk and potential. Ideally, a
SWOT analysis was made before.
The weighted points are now set in comparison to the total costs. Due to
this, a meaningful graphic analyis about the cost-benefits can be made.
regarding a future bank relationship. As an example, the graphs my look
like the ones below:
Qualitative
Economical
Cost-Benefit
With this analysis you are able now to segregate the expensive ones
with poor performance from the ones with more competitive prices
and better offers. You can now invite the 2 - 3 best banks for a
personal meeting. The bank will now show clear more respect and
makes more concessions, if you show them from the beginning that
you are interested in a very professional relationship and that you are
able to manage your business well. Because the bank is your vendor
and you her customer. Same like in your operational business you
rely on one of the very most important points in a business:
CONFIDENCE.
Contact us, we would be glad to show you the possible
opportunities!
that there is no doubt about that they are the best experts regarding
safety. If anybody likes to ask for counterparty risk then it was always
the bank who declined a request for funds due to reasons of
reliability. But now the customer should also take this position, it may
be even a matter of his existence. Doing business with the wrong
bank may lead to total loss of liquidity. Easier told as done - but how
how can one rate his current and/or desired bank?
The one who has the money is right. This anrupt conclusion was in
the past (and is mostly still fact) the lived understanding of most
heads of individuals which have the power of dealing with money -
and they do it as it would be their own money. That’s obviously the
reason for “a golden key can open any door”. Plot-wise this money is
not their property, they just administer it. In fact they have the same
amount as liabilities by collecting money from other people /
organsations. That’s not the same as it is for every corporate outside
the banking business. It’s just a transfer from one person to the other
and getting a margin for.
Rating of a Bank
Before you can make a rating it is important to get a customer-
supplier view, free of emotions and all the time critical challenged
whether the earned experience is correct resp. whether they are still
actual. That’s the reason for the (allowedly little bit provocating)
introducing explanations which should make someone aware of trust
in overall simple things.
Example
The bank to be rated has good or very good rating at the well known
rating agencies Standard & Poors, Moody's or Fitch.
1.
Is this rating for a specific bond or really a overall credit-rating?
2.
Is the rating for the whole banking organsiation / group or is it
just for a part of it, e.g. a single country or segment?
3.
How old is the rating? If it is older than a year you should better
renounce it.
4.
If you buy any product from bank, is it really from you bank and
not from another one, rated very much worser? Remind on
practical examples, e.g. Credit Suisse vs. Lehman Brothers?
They sold Lehman products, but the customer thought that ge
made an investment at Credit Suisse. In fact, the customer lost
everything when Lehman went bankcrupt suddenly over night!
That means, is the rating in fact what you are interested for, i.e. does
it belongs to your business? If you don’t have a current and
important, suitable rating, but also for every other rating for fully
transparent analysis, you see below a proven approach to rate your
current or future bank.
Under all circumstances you should make your own personal
analysis for a current existing rating. As you can see below,
such an analysis can never be substituted by a general one.
Segmentation
The result should be a cost-benefit analysis (i.e. two dimensions)
which is segregated in general criterias, risk and potential. Ideally, a
SWOT analysis was made before.
The weighted points are now set in comparison to the total costs. Due to
this, a meaningful graphic analyis about the cost-benefits can be made.
regarding a future bank relationship. As an example, the graphs my look
like the ones below:
Qualitative
Economical
Cost-Benefit
With this analysis you are able now to segregate the expensive ones
with poor performance from the ones with more competitive prices
and better offers. You can now invite the 2 - 3 best banks for a
personal meeting. The bank will now show clear more respect and
makes more concessions, if you show them from the beginning that
you are interested in a very professional relationship and that you are
able to manage your business well. Because the bank is your vendor
and you her customer. Same like in your operational business you
rely on one of the very most important points in a business:
CONFIDENCE.
Contact us, we would be glad to show you the possible
opportunities!
