Beyond compliance with the rules, what do bank examiners assess?

1. Examiners first rate a bank on its compliance with banking regulations. 2. They then rate the overall financial condition of the bank. 3. That assessment focuses on loan quality, management practices, earnings and liquidity. 4. It also asks whether the bank has enough capital, meaning equity, to safely support its activities. 5. Each of the five looks at a different weakness, from bad lending through to a thin equity cushion. 6. Advertising spend and analyst forecasts say nothing about whether a bank can absorb losses, which is why they are not examined. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.4 Insuring Bank Deposits_