For more information, contact Eric Skrum , 608/441-1216, eskrum@wisbank.com
The only accurate financial institution rating is issued by regulators
( MADISON ) – The public and media shouldn’t place any credibility in ratings of financial institutions prepared by private companies, according to the Wisconsin Bankers Association (WBA). The only accurate rating is the one issued by government regulatory agencies, and they are not made public for a reason.
“The private company ratings use arbitrary and simplistic formulas based solely on information that is publicly available and may be influenced by the business interests of whomever is calculating them,” said Kurt Bauer, WBA president/CEO “These ratings are flawed at best.”
Bauer stated that non-regulatory bodies cannot fully assess the true condition of a financial institution. “Use of these ratings by the media is sensational and a disservice to the public,” he explained.
Instead, Bauer encouraged anyone with questions to discuss them directly with someone from their depository institution.
