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Market Indicators for Banking Metrics

Mon Apr 20, 2009

Capitalytics is proud to announce a new feature to our recently unveiled "Executive Summary": Capitalytics system will now scan market metrics to identify which, if any, can be used as a potential indicator of either deposit levels or late assets. In the event that the past performance of one of these banking metrics correlates strongly (either positively or negatively) with one of the market metrics that we scan (e.g., CPI level, etc.), a message like the following is presented in the bank's Executive Summary.

At this time, reports will only be noted if the banking metric is correlated with the market metric by more than 80% (i.e., if the correlation coefficient of the two metrics' time series, assuming the indicated lag of 1 to 4 quarters, is greater than 0.8 or less than -0.8).