| Bank ratings are a useful tool, amongst others, in determining a financial institutions standing. Should you need any further information, please contact FinanceOne.
Example of Long Term rating schedule (supplied by Moody's, a company that independently examines and then rates financial institutions). A Long Term Rating signifies a financial institutions ability to meet it's long term commitments. These are listed below from the best rating downwards.
However another way to gauge the risk of your bank account it is to look at the credit default swap market. Credit default swap (CDS) spreads measure the premium to the risk-free interest rate that a bank can expect to pay in the market for 5-year loans. The higher the CDS for any given bank, the riskier the market thinks that particular bank’s debt is. |
