US Banks Financial Analysis and Services

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Comprehensive Source of information and Analysis
on US Banks.

• BankVega

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Our Services

• We provide value added information and analysis
  of the banking sectors financial, marketing, and
  strategic issues.
• Our information toolkits and bankvega reports
  help you conduct an in-depth analysis of any
  bank, thrift, or credit union in the country
• These reports provide excellent support tools to
  bank managers and analysts in their decision
  making. Please contact us at bankvega_at_gmail.com
  for further information and specific products or
  visit www.bankvega.com

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Two Views on Banking Crisis

• A Sunsopt View,- The business cycle based view
  instead focuses on fundamental weaknesses in the
  economy as the key force behind a banking crisis.
  Under this view, economists argue that banks fail
  because their illiquid risky investments turn out
  to be bad.
• A Business Cycle-While these two views share
  several common feature, there are many
  differences in their policy prescriptions. Under
  the sunspot view, the regulator should try hard
  to avoid a self-fulfilling prophecy. Regulations
  such as deposit insurance from the government are
  geared precisely toward avoiding such runs.

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Risk Measures

• Standard Deviation An intutive and simple
  measure of risk of any portolfio (of stocks,
  loans, bonds for example) is simply its standard
  deviation. This measure captures the volatility
  of a portoflio and thus gives you a sense of the
  extent by which a portoflios value may change
  around its mean.
• Expected Shortfall Measure While VaR has been a
  very popular measure of risk, it has one
  fundamental weakness. Recall, VaR measure the
  probabilty that a portfolios value will exceed a
  its VaR number in a given time-horizon.
• Put Option Risk Measure Another interesting
  measure of a banks risk is the premium paid on a
  put option on the banks value with strike price
  of zero. This premium masures the markets
  perception of the bank failure likelihood and
  therefore is closer in spirit to concerns about
  failure. Our safety index risk measure is again
  closer in spirit to this risk measure.