3 Tips and Tricks Choosing a Credible Bank
After the events of the bank burglary became big news, if you feel concerned about your savings in the bank? Should be concerned because something like that could happen to anyone. Not only are clients who fall into categories of wealth management or private banking, but also can override most customers. How? Can.
So you do not become the next victim, some things should be a concern before placing your funds in a bank. First, the bank’s assets. What may make, in the banking industry, “size matter”. That is, the assets of the banks is one indication of the magnitude of public confidence in the bank because the asset is a collection of public funds placed in banks and then channeled as loans and other earning assets.
Second, bank capital. The larger the capital, the higher the responsibilities and risks borne by the owner. Just compare the amount of capital to bank assets. The greater the ratio, the stronger the bank. In other words, if there’s “nothing” in the relevant bank, the money the owner will also be missing.
Third, financial ratios when the bank announced its financial performance to the public. It can be seen in various newspapers. Normally banks submit financial statements four times a year or every quarter. You can compare one bank with another bank. Some important ratios that must be considered is the non-performing loans, or the number of non-performing loans of banks. The higher the ratio, the worse the quality of bank loans in question.
Here can be many possible causes. Since the granting of credit can be arbitrary, because the debtor, the debtor could be given the credit is not qualified, it could be due to economic factors. However, the latter factor is not immediately credible because if a high non-performing loans as the economy is not conducive, it should also experienced similar things with other banks. So if only one or two banks that have high non-performing loans, we can be sure it was more because of the management of credit in shambles. And if some credit is given for subjective reasons, such as acquaintances, relatives, and others. Avoid such a bank because the funds that you place will only be ashes. Turned into bad debts at the bank’s assets.
Related post:
