Euromoney Bank Risk methodology

April 27, 2017

Post-global financial crisis, understanding the financial performance of banks remains difficult for investors. Due to the complex nature of bank reporting, both equity and credit analysts are extremely influential in how banks are viewed by investors. Euromoney Bank Risk has therefore been created to capture, interrogate and distil the opinions of influential analysts. By aggregating the granular qualitative opinions of analysts, we are able to track various indicators.

For an overview of EBR's factor definitions and scaling guide, click here. For individual detailed explanations, use the links in the tables below.

Category	Management & Governance
Weight	33.3%
Factor	Depth & Quality of Management	Corporate Strategy	Strategy Execution	Quality & Strength of Board Oversight	Transparency & Quality of Reporting	Operational Risk Control
Sub-Weight	5.55%	5.55%	5.55%	5.55%	5.55%	5.55%

Category	Capital Position
Weight	33.3%
Factor	Deposit Gathering Capability	Ability to Raise Loss Absorbing Capital	Strength of Capital Position	Resilience to Liquidity/Funding Shocks
Sub-Weight	8.3%	8.3%	8.3%	8.3%

Granular – Scores are created bottom-up based on 14 contributing factors

Quantifiable – Risk score captures fundamental views of qualified analysts

Timely – More reactive than the rating agencies

Expertise – Analysts rate banks they know best

Qualitatively – Rate 14 factors within 3 categories (Management & Governance, Financial, and Capital Position)

Periodical – Analysts score quarterly

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Do not hesitate to contact the EBR team if you have any enquiries.

Dirk Schneider (Dirk.Schneider@euromoneyplc.com) Tel: + 44 (0) 20 7779 8640