FIMS: A New Financial Institutions Monitoring System for Banking Organizations

Federal Reserve Bulletin, Vol. 81, pp. 1-15, January 1995

41 Pages Posted: 26 Feb 2008 Last revised: 18 Nov 2008

See all articles by Rebel A. Cole

Rebel A. Cole

Florida Atlantic University

Jeffery Gunther

Federal Reserve Banks - Federal Reserve Bank of Dallas

Barbara Cornyn

affiliation not provided to SSRN

Date Written: January 31, 1995

Abstract

One of the primary responsibilities of banking regulatory agencies is to minimize the financial loss to the bank to Bank Insurance Fund that results from the failure of insured depository institutions. To discharge this responsibility, bank regulators evaluate the financial performance and condition of depository institutions and initiate prompt corrective actions when they find signs of distress. In evaluation, regulators use a combination of on-site examinations and off-site monitoring systems. In 1993, the Federal Reserve instituted the Financial Institutions Monitoring System ("FIMS," also known as "SEER," or System for Estimating Examination Ratings), which is significantly more accurate that previous off-site systems in identifying financially trouble banking institutions. This article gives the background of FIMS, describes the new system, and explained how it improves on previous systems.

Keywords: bank, bank failure, bank supervision, CAEL, CAMEL, early warning system, EWS, Federal Reserve, SEER, UBSS

JEL Classification: G21, G28, E53

Suggested Citation

Cole, Rebel A. and Gunther, Jeffery and Cornyn, Barbara, FIMS: A New Financial Institutions Monitoring System for Banking Organizations (January 31, 1995). Federal Reserve Bulletin, Vol. 81, pp. 1-15, January 1995. Available at SSRN: https://ssrn.com/abstract=1097477

Rebel A. Cole (Contact Author)

Florida Atlantic University ( email )

College of Business
777 Glades Road
Boca Raton, FL 33431
United States
1-561-297-4969 (Phone)

HOME PAGE: http://rebelcole.com

Jeffery Gunther

Federal Reserve Banks - Federal Reserve Bank of Dallas ( email )

2200 North Pearl Street
PO Box 655906
Dallas, TX 75265-5906
United States

Barbara Cornyn

affiliation not provided to SSRN ( email )

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