Banking Methodologies

A.M. Best periodically provides its analytical views on risk issues and the financial strength of U.S. banks. Analytical methodologies are published for specialized banking operations and sectors within the banking industry. Additionally, A.M. Best has developed analytics on regional banking markets in the United States in order to incorporate local economic and regulatory factors in its assessment of banks.

• Rating U.S. CDFI Banking Organizations (January 8, 2009) - This report provides a general background of the banks and bank (or thrift) holding companies having Community Development Financial Institutions designations, as well as A.M. Best Co.'s performance metrics and rating analytical framework for assessing their financial strength.
• A.M. Best's Rating Methodology for Banks (February 27, 2007) - The bank rating methodology outlines the principles and analytical criteria underpinning A.M. Best's rating opinion on a bank, its parent holding company and other affiliated banking entities as may be necessary as part of A.M. Best's ratings on a banking group.
• Analyzing Finance Companies (June 3, 2005) - The analytical framework for assessing finance companies highlights special issues particular to the finance industry, according to A.M. Best Co.'s latest rating methodology, Analyzing Finance Companies.
• Analyzing Commercial Banking Operations (March 28, 2005) - Globally, increasing numbers of banks and insurers have expanded operations into each other's industry. Based on this growing trend, A.M. Best Co. has released a methodology for evaluating the financial health of the banking operations of insurance-related enterprises.

Bank Rating Definitions

• A.M. Best's Guide to Bank Deposit Ratings (March 21, 2007) - A Best's Bank Deposit Rating is an independent opinion as to the company's ability to meet its ongoing financial obligations to depositors. For more information about Best's Bank Ratings, please visit Best's Banking Center.