Protecting Your Money
Selecting the right bank for your global business is an important choice. You have to make sure your bank offers the products, services and coverage you require and is a safe and sound institution. To this end we are pleased to provide you with this detailed financial standing and capacity statement in respect EQIBank Limited (“EQIBank”).
EQIBank’s Credit Rating
EQIBank is a leading and fiscally conservative global Bank. A key part of our risk averse approach is that the Bank does not offer any balance sheet lending and only invests in US Treasuries. This approach provides the Bank with a best of breed Stress Test Ratio.
Our client relationships are designed to be built on partnership, continuity and mutual trust and our jurisdictional advantages are synonymous with best-in-class banking, investment and wealth planning solutions. These foundations are complemented by our consistent aim towards prudent financial and risk management.
Capacity Statement
EQIBank is considered one of the world’s leading Global Digital Banks and a top ten digital bank. Client deposits are held in their respective currencies with leading correspondent banks in the United States, Europe and UK. EQIBank only utilizes the services of strong and secure correspondent banks. For example, for US$, EQIBank holds client deposits with Capital Bank of Texas which, as of December 31, 2019 holds $32.53 billion in assets with $3.06 billion in equity and has a Texas Ratio of 7.95% which is considered excellent, we also use Bank of Nevada a division of Western Alliance Bank which has $26.86 billion in assets with $3.19 billion in equity, resulting in a capitalization level of 11.87%, which is also considered excellent.
Capital
The Bank is fully compliant with all capital adequacy ratios required by our Regulators.
Gross non-performing assets (NPAs)
A non-performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. All banks are required to classify NPAs further into Substandard, Doubtful and Loss assets. A low gross NPA ratio means the bank’s asset quality is usually in good shape. EQIBank’s Gross NPA is 0% and deposits have no exposure to Substandard, Doubtful and Loss assets. This is considered to be very safe.
Net non-performing assets (NPAs)
The net NPA is the portion of bad loans which has not been provided for in the books. Net NPA is a good indicator of the health of the bank and, generally, the lower the percentage the safer the bank. EQIBank’s Net NPA is 0%. This is considered to be very safe.
Provisioning Coverage Ratio
Banks usually set aside a portion of profits as a provision against bad loans. A high PCR ratio (ideally above 70%) means most asset quality issues have been taken care of the and bank is not vulnerable. EQIBank’s PCR is infinite, due to our not offering loans. This is considered to be very safe.
Credit-deposit Ratio
This show how much a bank lends out of its deposits or how much of its core funds are used for lending. A low credit-deposit ratio suggests a healthy and safe balance sheet. EQIBank’s PCR is 0%. This is considered to be very safe.
Net Interest Margin
This is the difference between interest earned by a bank on loans and the interest it pays on deposits. NIM is high for banks with higher low-cost deposits or high lending rates. Traditionally, a high NIM and low NPA is considered secure and preferable. As EQIBank does not pay interest on deposits over the prevailing rate of correspondents and does not lend monies.
Texas Ratio
One calculation often used for evaluating banks is the Texas Ratio, which looks at how likely bad loans are to adversely impact a bank. The Texas Ratio divides nonperforming assets by tangible common equity and loan-loss reserves. The safest banks have a Texas Ratio well below 100% (or 1:1) as they are better able to absorb losses on defaulted loans. EQIBank’s Texas Ratio is 0%. This is considered to be very safe.
In conclusion, EQIBank strives to provide safe and secure global transaction banking and avoids risk associated with general lending. This, in combination with our strong and robust correspondent banks ensures we are able to provide protected banking to clients across the globe. Please do not hesitate to contact your EQIBank Relationship Manager if you have any questions or queries.
1 The Bank’s policy may change over time in consultation with the Risk Committee and Credit Committee
2 https://irishtechnews.ie/10-digital-banks-to-keep-an-eye-on-in-2019/
3 http://www.bankregdata.com/allAQmet.asp?met=NPA