Banking Review2003 VOLUME 15, NO. 3
Using Market Information to HelpUsing Market Information to Help
Identify Distressed InstitutionsIdentify Distressed Institutions
The SCOR System of OffThe SCOR System of Off --SiteSite
MonitoringMonitoring
RRecent Developmentsecent Developments
FEDERAL DEPOSIT INSURANCE CORPORATION
Using Market Information to HelpUsing Market Information to Help
Identify Distressed InstitutionsIdentify Distressed Institutions
The SCOR System of OffThe SCOR System of Off --SiteSite
MonitoringMonitoring
RRecent Developmentsecent Developments
FEDERAL DEPOSIT INSURANCE CORPORATION
Banking Review2003 VOLUME 15, NO. 3
Using Market Information to Help Identify
Distressed Institutions: A Regulatory Perspective (page 1)
by Timothy J. Curry, Peter J. Elmer, and Gary S. Fissel
This article explores the notion that publicly available stock price, return, and other market-related
variables can provide timely information about bank and thrift financial condition; the article also
determines whether such information can be used to improve the predictive accuracy of traditional
off-site monitoring models for the purpose of anticipating changes in the CAMEL ratings assigned by
regulators.
The SCOR System of Off-Site Monitoring:
Its Objectives, Functioning, and Performance (page 17)
by Charles Collier, Sean Forbush, Daniel A. Nuxoll, and John O’Keefe
The FDIC monitors all insured institutions and attempts to identify previously sound institutions
that have developed significant weaknesses. In late 1998, the FDIC adopted a statistical model,
SCOR, as its basic method of monitoring insured institutions between examinations. This article
describes how the SCOR model was designed to maximize accuracy and to give analysts insight into
the potential weaknesses of financial institutions.
Recent Developments Affecting Depository
Institutions (page 33)
by Lynne Montgomery
This regular feature of the FDIC Banking Review contains information on regulatory agency actions,
state legislation and regulation, and articles and studies pertinent to banking and deposit insurance
issues.
The views expressed are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance
Corporation. Articles may be reprinted or abstracted if the FDIC Banking Review and author(s) are credited. Please provide the
FDIC’s Division of Insurance and Research with a copy of any publications containing reprinted material.
Chairman Donald E. Powell
Director, Division of Insurance Arthur J. Murton
and Research
Deputy Director Fred Carns
Executive Editor George Hanc
Managing Editors Jack Reidhill
Lynn Shibut
Publication Manager Geri Bonebrake
Using Market Information to Help Identify
Distressed Institutions: A Regulatory Perspective (page 1)
by Timothy J. Curry, Peter J. Elmer, and Gary S. Fissel
This article explores the notion that publicly available stock price, return, and other market-related
variables can provide timely information about bank and thrift financial condition; the article also
determines whether such information can be used to improve the predictive accuracy of traditional
off-site monitoring models for the purpose of anticipating changes in the CAMEL ratings assigned by
regulators.
The SCOR System of Off-Site Monitoring:
Its Objectives, Functioning, and Performance (page 17)
by Charles Collier, Sean Forbush, Daniel A. Nuxoll, and John O’Keefe
The FDIC monitors all insured institutions and attempts to identify previously sound institutions
that have developed significant weaknesses. In late 1998, the FDIC adopted a statistical model,
SCOR, as its basic method of monitoring insured institutions between examinations. This article
describes how the SCOR model was designed to maximize accuracy and to give analysts insight into
the potential weaknesses of financial institutions.
Recent Developments Affecting Depository
Institutions (page 33)
by Lynne Montgomery
This regular feature of the FDIC Banking Review contains information on regulatory agency actions,
state legislation and regulation, and articles and studies pertinent to banking and deposit insurance
issues.
The views expressed are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance
Corporation. Articles may be reprinted or abstracted if the FDIC Banking Review and author(s) are credited. Please provide the
FDIC’s Division of Insurance and Research with a copy of any publications containing reprinted material.
Chairman Donald E. Powell
Director, Division of Insurance Arthur J. Murton
and Research
Deputy Director Fred Carns
Executive Editor George Hanc
Managing Editors Jack Reidhill
Lynn Shibut
Publication Manager Geri Bonebrake