Is there a way to know which banks are in trouble?


Quick Answer

One way to know which banks are in trouble is to check the bank's rating, notes Bankrate and BauerFinancial. A two-star or one-star rating on Bankrate.com means a bank is performing below average. At BauerFinancial.com, banks with ratings of two, one or zero stars are in trouble.

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Full Answer

Bankrate.com rates commercial banks, savings institutions and credit unions on a scale of one to five stars, with five being the highest rating. If a bank receives one or two stars, it does not mean it is about to fail, but certain factors are causing the bank to underperform, notes Bankrate. BauerFinancial rates banks and credit unions from zero to six stars, with six being the highest rating. Banks receiving two, one or zero stars are considered problematic because they are facing significant challenges, notes BauerFinancial.

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