Bank Health Index
The BHI provides an ongoing method to identify issues in the banking sector at an individual bank level, based on a machine-learning model developed jointly by BRG’s AI and banking teams.
Combining Advanced AI Capabilities with Extensive Sector Experience
BRG’s Bank Health Index (BHI) provides an ongoing method to identify issues in the banking sector at an individual bank level. The BHI is based on a machine-learning model developed jointly by BRG’s artificial intelligence (AI) and banking teams.
The index uses a variety of data points, including publicly available data since 2000, to provide a quarterly forecast of the health of financial institutions over the next six months. The subscription-based index provides access to not only leading-edge analytic results but also BRG’s banking experts, who leverage their deep experience to provide valuable context to the results. The BHI will be updated on a quarterly basis with additional data and insights from the sector.
The BHI considers various factors that drive bank health, using historical data of failed banks and banks that have been acquired to inform our analysis. It takes the different elements of the call reporting, finding relationships that impact bank health and predict the potential for failure and future potential of being acquired.
For regulators, investors, and private equity firms, and law firms, the BHI provides important clarity, synthesizing vast amounts of data to identify banks that may be experiencing difficulty or underperforming based on historical data with BRG’s leading banking expertise.
The index combines the expertise of BRG’s AI practice, composed of data scientists, data management specialists, and senior leaders who have decades of experience working with dispute and compliance technologies, with BRG’s banking team, whose professionals have deep experience advising regulated financial institutions, investors, and their attorneys on issues including regulatory and risk management matters, financial services industry practices, financial strategies and litigation challenges.