Bank Condition
What is bank condition?
A bank condition is a random variable that predicts the likelihood of failure of a bank. However, the actual probability of failure is not made known to depositors.
Where have you heard about bank condition?
It's quite common to check the condition of your bank or any bank that you're thinking of using. After the Financial Crisis of 2008 customers are no longer blind banking and some sort of analysis of a bank’s history and future often takes place.
What you need to know about bank condition...
With any bank’s condition, the amount of research done into the company will inevitably depend on what type of accounts you use or will be using and, ultimately, how much money you’ll be entrusting your bank with. For example, a current account with money being withdrawn and deposited regularly will not pose as much of a risk as an investment account, with a large sum of money being held by your bank for the foreseeable future. As the true probability of failure is not made public knowledge you can usually check the stability pages on your bank’s website.
