The adequacy of the bank's capital base, net worth, and reserves for supporting operations and future growth plans, now measured on a risk-adjusted basis. The ability of bank's management to administer properly all aspects of the financial business and plan for future needs and changing circumstances, rated after the other four categories are completed. The ability of the bank to generate earnings to maintain public confidence, cover loan losses, and provide adequate security and return to depositors. The ability of the bank to manage liquidity and funding for its liabilities.
Banks are subject to periodic audits and supervision by federal and state regulatory authorities.
These ratings are then summed, averaged, and rounded down to the next lowest whole number. These ratings are not available to the public.