Analysis of the commercial bank''s reliability in line with its specialization
Importance The article analyzes the reliability of commercial banks. It substantiates the need to articulate bank reliability analysis methods, considering their specialization and factors influencing each bank in particular, thus allowing to forecast bank's reliability. Objectives I outline my own methodological approaches to analyzing the reliability of commercial banks. Methods I conducted a vertical analysis of the balance sheet, structure of the statement of the bank's financial results, and public information on banks, i.e. persons who can materially influence the credit institution, information from the Deposit Insurance Agency. Results I identified prevailing items of income, expenses, assets and liabilities and grouped banks per specialization. The article indicates the most significant factors that are individual for each bank, influencing its reliability. As an analysis of banks' operations shows, there may be a variety of banks, methods for construction of assets, liability, income and expenses even if a few banks are considered. Therefore, the reliability of each bank, more or less, depends on various factors or a combination of factors. Conclusions and Relevance When outlining methods for analyzing the bank's reliability, it is critical to embed the possibility of considering the specifics of each bank. The findings can come in handy for clients, bank managers, and supervisory bodies.