| 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% |
ˆ Amount Needed