Until recently, financial strength ratings and credit were only used as tools of work stock market participants.Now the situation has changed.The activity of rating agencies covered a much larger area, helping to mainstream consumers to make the right choice in favor of a particular bank or insurance company.And in fact it should be the ordinary citizen.That's why it helps to understand that such ratings.A start is with their appearance.
In general, this system was first used over a century ago.At the end of the nineteenth century in the United States began to use ratings of financial stability and creditworthiness.At first, they are awarded only to issuers of bonds and serve as a tool for professionals, trading on the stock markets.Only twenty years ago we stopped using this index as a control lever for the credit assessment.If we talk about what the ratings, it is worth noting that until recently they have not been used as one of the characteristics for selecting the appropriate bank, insurance or credit organizations.In the world of this system is not used, because it was quite difficult to understand by ordinary citizens, because of what was not in demand.
Now, many may wonder what is the rating of banks.After all, the last time he used to determine the stability of the financial institutions as well as to understand which companies and agencies worth working population, small and medium businesses.That is why in recent years the role of ratings has become very large, and they are now increasingly used.
use in everyday life
Now that the question of what is the ratings, everything was more or less clear, it is necessary to address aspects associated with their use in everyday life.And then they will be useful for understanding what the business can be called a more stable and reliable to determine whether or not to work with any specific insurance companies and other financial institutions.
So, what is the ratings, you know, now you can go to the meaningful moments.The first is very important as regards financial strength ratings assigned by specialized agencies.Generally, the analysis produced by financial consultants and market analysts, refers to the field of assessing the quality of services provided.It turns out that the use of the financial strength ratings in no way connected with the assessment of the bank itself, the service, the insurance company, the convenience of working with a financial institution or management company.This is only an estimate of the position of the organization itself.
What is the rating of banks?
This parameter in the description of the financial authority can be used to understand, reliable or not.That is, to determine the likelihood of implementing a bank or an insurance company of its direct obligations to the client.However, the rating does not answer the question of whether it is convenient, you will be working with the institution, how good and comfortable to use its site, a number of offices it has, where you can apply at any time to obtain all necessary information and services.
use in other situations
When it comes to the insurance company, then there is also such a parameter as a high ranking is not indicative.Because it will not be clear how the company is working with its clients, if it is not condemned them for payments, which is now a very common practice.
That is why the use of the ratings can not be considered the only tool to select an insurance company or a bank.It is necessary to pay attention also to the list of services, on usability services through the site easy to use offices, the number of positive and negative feedback about the organization.So, if we talk about what the ratings, then they can be called only one tool that is required for the proper selection, clipping the least reliable banks and insurance companies, as well as to work with a more stable financial institutions.
in Russia in recent time, many banks and insurance companies remained without a license and went bankrupt because of the situation.The financial sector is very difficult to survive the economic crisis, and some were even larger structures without a license.This is what speaks of the need to be very careful about the selection of banks and insurance companies that you can trust.As a rule, institutions lost their licenses and bankrupt, had a fairly low rating, but not all.There are examples of how the banks are sufficiently high levels of financial stability experienced significant problems, because of which went bankrupt.And here we can not talk about the error attributed to specialized agencies.Their assessment is a characterization of the probability of bankruptcy or some financial problems.
The same can be said, answering a question about what a personal rating.It is made for individuals whose activities may have an impact on other people's work.For example, the rating is formed of traders in the stock market, showing who and how it works.This indicator is not a guarantee that everything will continue to be at the same level, but it gives an idea of the method and principle activities.
How are the ratings of financial stability?
on this issue can be elaborate.It is important to define what it is, and how the agency's rating, its performance is calculated by assigning a score to insurance companies, banks and other financial institutions.
So, if the word "rating" it became clear, it is necessary to consider it in the context of, relating to financial institutions.Under this indicator hides estimate of the probability of bankruptcy.To say simply, it suggests the possibility of a bank or insurance company does not meet its obligations to customers, investors, creditors, and the insured persons.There is a more complex definition, but in this case it is possible to say that the probability of such a situation is the primary and most important.
ratings in other areas
As practice shows, the use of this parameter is appropriate to assess not only the financial sector but also in the game.So, it should be said that such a ranking in WoT.The game World of Tanks, which has become very popular in recent years, uses a system of assessment, indicating how successfully played by each of the gamers.Now, however, many have a question about what the rating WN6.The formula of this indicator is used the number of kills, damage caused, and other characteristics provide a small percentage.This ranking is impossible to cheat, like the old, because there are not considered base capture points, and other insignificant moments, allowing a qualitative assessment of the ability of the player.
As you can see, lately rating system is becoming more and more popular in all areas of life.