I'm looking for the best means to evaluate bank safety ahead of another financial crisis along the lines of what happened 10 years ago. (For the sake of argument, let's assume this happens sometime in 2019; I'm looking to discus what defensive measures to take with CDs, savings, and MMAs.)
I'd like to put my money in a safe bank, but determining safety is proving tricky. I like the health reports available on this site; it's very useful, but I'd like to dig further.
The Texas Ratio looks at today's non-current loans. What happens, though, if it turns out that a large % of loans rapidly become non-current, for instance if ARM rates jump suddenly and catch a number of homeowners unprepared?
I'd like to see what kind of investments a bank lends to, in broad terms. For instance, what % goes into RE loans? Of those, how many are for primary residences vs. investment properties? How many are standard 15/30 yr fixed, and how many are ARMs or subprime? What metric would be good to use and is readily available to the general public?
I find the recent higher rates attractive but I want to weight those against the relative risk of the bank defaulting or failing.
Thanks in advance! This is a great site.