The Clearing House Bank Conditions Index
The Clearing House has created an new index that provides a quantitative assessment of the resiliency of the U.S. banking sector. The index is constructed using a wide range of indicators that are commonly used to characterize the condition of the banking sector. Specifically, The Clearing House Bank Conditions Index (TCHBCI) synthesizes data on 23 banking indicators, grouped into six categories: capital, liquidity, risk taking, asset quality, interconnectedness, and profitability. The choice of the variables included in each category follows a large academic literature on banking crises.