As part of our internal risk program, we monitor and calculate dozens of metrics (close to 50 as of summer 2023) related to the health of our partner banks.
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The input data we use is taken directly from the FDIC, where it is published on a quarterly basis according to FDIC standards, and from regulatory reporting to the SEC if the bank is public. This means we rely on regulatory data and metrics, rather than information from the banks themselves. We do this to ensure the integrity of the data, and to standardize risk reporting and monitoring.
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The information is evaluated on a per-bank basis over time, and for each bank against the other banks in our program and compared industry norms. As a basic example, we look at the composition of the assets on the balance sheet and how those asset classes are changing in terms of risk, as well as the robustness of the funding on the liability and equity side which finances those assets.