Lafferty Bank Quality Benchmarking is designed for:
- Bank chairpersons, deputy chairpersons, independent and other non-executive directors — who will be able to use the bank quality ratings to judge how the bank is performing relative to peers.
- CEOs, CFOs, heads of retail banking, corporate banking, investment banking and other business units — who will be able to compare their bank's quality rating to its peers around the world and to understand the long-term strategies that in the past have delivered sustainable re-ratings in both stakeholder perception and valuation ratios. This approach also helps to develop some simple ways of thinking about what customers and shareholders really value, and hence what management should be rewarded for.
- Heads of correspondent and international banking — who need to keep abreast of the quality of their bank partners.
- Heads of risk in banks management teams — to understand the quality and practices of the world's banks.
- Remuneration and audit committees — the methodology provides a much better framework to judge performance and rewards for executives. EPS growth targets and RoE have been thoroughly discredited. Well thought through incentive structures are the difference between success and obloquy. This service helps make sure that "rewards for success" are in place.
- Investor relations, public relations and corporate marketing departments — the service can be used in conjunction with investor feedback from roadshows and management meetings to see where there is a perception gap — and what the bank's strengths and weaknesses are rewarded for.
In some ways the service is similar to sell-side research, except it is genuinely independent, methodical, and supported by the latest academic and central bank thinking on heuristics.
Each of these will see how banks rate for quality according to the Lafferty criteria. They can see how their bank fares relative to its country peers and the best banks worldwide. This is a unique independent measure, which closely correlates with stock market value and long-term success.
Central banks and regulators can use this independent assessment of quality to supplement their judgement of the institutions they oversee. With its focus on quantitative and qualitative assessment criteria, Lafferty Bank Quality Benchmarking provides a simple yet effective quality comparison across jurisdictions.