Is my money safe? On the strength of our banks
Banks are institutions where miracles happen regularly. We trust our money to anyone with rare, but that our – and the banks. Despite the turbulent history of mismanagement, corruption, false promises and representations, delusions and incoherent behavior – banks still succeed to motivate us, for our money. This is partly the feeling that there is safety in numbers. Fashion is now the term “moral hazard.” The implied warranty of State and other financial institutions leads to risks that otherwise would have avoided taking. It is partly the complexity of the banks in marketing and promoting themselves and their products. glossy brochures to improve, professional equipment and video presentations and large-as a sanctuary, apartment complexes all serve to the image of banks as the temples of the new religion of money.
But what is behind all this? How can we judge the soundness of our banks? In other words, how can we tell if our money into a safe haven? The reflex is to go to the bank balances. Banks and financial statements were both in their modern form invented 15th century. A balance sheet, together with other statements is for us a true and complete health of the bank, its past and its long-term prospects. What is surprising is that – despite common opinion – the case. The least surprising element is that it is pretty useless if you can read.
The statements (income – known as the profit and loss statement – Statement, Cash Flow and Balance Sheet) come in many forms. Sometimes they conform to Western accounting standards (Generally Accepted Accounting Principles, GAAP, or less stringent and more blurred International Accounting Standards, IAS) developed. Otherwise conform to local accounting standards, which are often inadequate. However, you should apply to banks, their financial reports to make available updated search. The best option would be a bank which is used by accounting firms of the Big Six control in western and makes its reports are made public. The consolidated financial statements should consolidate the financial results the Bank’s financial results for its subsidiaries or affiliated companies. Often hidden in the corners of the property. Banks are rated by independent agencies. The best known and most reliable of the lot is Fitch IBCA. Another reason is Bree Thomson Bank Watch. These agencies assign a letter and number combinations for banks that reflect their stability. Most agencies differentiate the short-term assessment of long-term prospects of the institution.
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Tags: accounting firms, accounting principles, apartment, apartment complexes, bank balances, cash flow, complete health, financial institutions, glossy brochures, international accounting standards, money, profit and loss, profit and loss statement, property, safety in numbers, term prospects, video presentations