Dec 5, 2008
By making bad decisions.
But I agree with you. Relatively they're far more stable than other banks, well as far as I know and “kutob” are concerned (take note, as far – which may not far at all, hehe) and as far as your first post is concerned. I will presume of course, that the other banks are not included because they’d pale in comparison in terms of financial standing in general which makes them less stable. Logical.
I recognize the fact that “ALL” investment involves a certain degree of risk. No exception. And that the more stable an institution is, the lesser the risk. But how do we gauge stability? For humans, a good insight, for banking institutions – I have no idea. Hehe.
Let us just say, in my opinion, stability should equate with:
• profitability (positive net income)
• and reduced risk in terms of:
-liquidity (they must have sufficient cash available should the general public decide to withdraw all their funds)
-credit risk (they must make sure that their borrowers will be able to repay the loans made)
-interest rate risk (the bank must be have enough revenues in order to pay the interest that it owes to its depositors)
As to how you would compute the above, sorry not so much of an idea. But I’m sure, the total assets, deposits, loans, income, capitalization, etc. are variables to the equations. Include mo pa diyan management.
Let’s just say, we may come up with an idea on their standing and hence solidness by looking at the numbers. The higher the better? But as to a firm insight on their stability, malabo.
Afterall sila lang me alam sa totoong assets and liabilities. Especially, their accountants. Hehe.
______________________________________________________________________
Dapat talaga sinunod ko payo ng nanay ko. Mag-CPA daw ako. Tsk, tsk.
By making bad decisions.
But I agree with you. Relatively they're far more stable than other banks, well as far as I know and “kutob” are concerned (take note, as far – which may not far at all, hehe) and as far as your first post is concerned. I will presume of course, that the other banks are not included because they’d pale in comparison in terms of financial standing in general which makes them less stable. Logical.
I recognize the fact that “ALL” investment involves a certain degree of risk. No exception. And that the more stable an institution is, the lesser the risk. But how do we gauge stability? For humans, a good insight, for banking institutions – I have no idea. Hehe.
Let us just say, in my opinion, stability should equate with:
• profitability (positive net income)
• and reduced risk in terms of:
-liquidity (they must have sufficient cash available should the general public decide to withdraw all their funds)
-credit risk (they must make sure that their borrowers will be able to repay the loans made)
-interest rate risk (the bank must be have enough revenues in order to pay the interest that it owes to its depositors)
As to how you would compute the above, sorry not so much of an idea. But I’m sure, the total assets, deposits, loans, income, capitalization, etc. are variables to the equations. Include mo pa diyan management.
Let’s just say, we may come up with an idea on their standing and hence solidness by looking at the numbers. The higher the better?
But as to a firm insight on their stability, malabo.Afterall sila lang me alam sa totoong assets and liabilities. Especially, their accountants. Hehe.
______________________________________________________________________
Dapat talaga sinunod ko payo ng nanay ko. Mag-CPA daw ako. Tsk, tsk.
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