Not sure what this means for homeowners in foreclosure, but BauerFinancial Inc., an independent rating company, announced that 3 of the 14 largest banks operating in Greater Cleveland–Huntington, U.S. Bank, and Park View Federal Savings–saw their financial strength increase last quarter. This is significant news because the ratings do not change often. Out of the 34 banks that operate in Northeast Ohio, only 1 bank, Home Savings Bank of Kent, had their rating go down from 4 stars to 3.5 stars.
In more good news, banks are getting healthier in the entire state of Ohio, 71% of them earning a 4 star or higher rating based on the first quarter of 2011. Banks with ratings of 4 stars or above are considered excellent, and are recommended to businesses. Ohio’s banks are actually stronger than the overall rating across the United States. The nation’s overall bank rating was 61% excellent. However, the bad news is that there are still plenty of troubled banks in the U.S., 5.9% of Ohio’s banks are troubled.
While it is good to hear that Ohio’s banks are getting stronger, they still have a long way to go until the local economy has recovered from the mistakes that many of the banks made on mortgages, and foreclosures. Still if you need to rely on a bank, which most of us do, it is good to know that the bank is not about to go under. If you want to look up the stability of your own bank, and what the star ratings mean, you can go to the BauerFinancial website and look it up.