PEARLS |
| | | | |
| P - Protection
|
Goals (Excellence)
|
| 1. Loan Losses Allowances / Delinq. >12 Mo. |
100% |
| 2. Net Loan Loss Allowances / World Council Allowance Required for Delinq. 1-12 Mo. |
35% |
| 3. Complete Loan Charge-off of Delinq. > 12 Mo. |
Yes
|
| 4. Annual Loan Charge-offs / Average Loan Portfolio |
Minimized
|
| 5. Accum. Charge-offs Recovered / Accum. Charge-offs |
> 75% |
| 6. Solvency (Net Value of Assets/Total Shares & Deposits) |
≥ 111% |
E - Effective Financial Structure
|
Goals (Excellence)
|
| 1. Net Loans / Total Assets |
70-80% |
| 2. Liquid Investments / Total Assets |
≤ 16% |
| 3. Financial Investments / Total Assets |
≤ 2% |
| 4. Non-financial Investments / Total Assets |
0% |
| 5. Savings Deposits / Total Assets |
70-80% |
| 6. External Credit / Total Assets |
0-5% |
| 7. Member Share Capital / Total Assets |
≤ 20% |
| 8. Institutional Capital / Total Assets |
≥ 10% |
| 9. Net Institutional Capital / Total Assets |
≥ 10% |
A - Asset Quality
|
Goals (Excellence)
|
| 1. Total Loan Delinquency / Gross Loan Portfolio |
≤ 5% |
| 2. Non-earning Assets / Total Assets |
≤ 5% |
| 3. Net Zero Cost Funds / Non-earning Assets |
≥ 200% |
R - Rates of Return and Costs
|
Goals (Excellence)
|
| 1. Net Loan Income / Average Net Loan Portfolio |
Entrepreneurial Rate |
| 2. Liquid Inv. Income / Avg. Liquid Investments |
Market Rates |
| 3. Fin. Investment Income / Avg. Fin. Investments |
Market Rates |
| 4. Non-fin. Inv. Income / Avg. Non-fin. Investments |
≥ R1 |
| 5. Fin. Costs: Savings Deposits / Avg. Savings Deposits |
Market Rates > Inflation |
| 6. Fin. Costs: External Credit / Avg. External Credit |
Market Rates |
| 7. Fin. Costs: Member Shares / Avg. Member Shares |
Market Rates, > R5 |
| 8. Gross Margin / Average Assets |
ˆE9=10% |
| 9. Operating Expenses / Average Assets |
≤ 5% |
| 10. Provisions for Risk Assets / Average Assets |
ˆP1=100%, ˆP2=35%
|
| 11. Other Income or Expense / Average Assets |
Minimized |
12. Net Income / Average Assets (ROA)
|
ˆE9=10% |
L - Liquidity
|
Goals (Excellence)
|
| 1. Liquid Assets - ST Payables / Total Deposits |
15-20% |
| 2. Liquidity Reserves / Total Savings Deposits |
10% |
| 3. Non-earning Liquid Assets / Total Assets |
< 1% |
S - Signs of Growth (Annualized Rates)
|
Goals (Excellence)
|
| 1. Net Loans |
ˆE1=70-80% |
| 2. Liquid Investments |
ˆE2 ≤ 16% |
| 3. Financial Investments |
ˆE3 ≤ 2% |
| 4. Non-financial Investments |
ˆE4=0% |
| 5. Savings Deposits |
ˆE5=70-80% |
| 6. External Credit |
ˆE6=0-5% |
| 7. Member Shares |
ˆE7 ≤ 20%
|
| 8. Institutional Capital |
ˆE8 ≥ 10%
|
| 9. Net Institutional Capital |
ˆE9 ≥ 10%
|
| 10. Membership |
≥ 15% |
| 11. Total Assets |
> Inflation + 10%
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