SmallBusinessNewz

Imagine showing up at your bank one day only to find an "out of business" sign barring the front door.  Now, we're not saying that's going to happen, but there are a few things you can do in order to research your bank's general condition.

Maureen Farrell and Brett Nelson recommend looking over call reports created by the FDIC.  They write, "One important measure of a bank's financial stability is its risk-based capital ratio. . . .  The FDIC mandates that a bank's risk-based capital be no less than 6% of its total assets.  You'd like a little more cushion than that--perhaps 8%.  To find this ratio in the call report, turn to the Regulatory Capital section, called Schedule RC-R, and look for the line item 'Total risk-based capital ratio.'"

Thanks to the call reports, you can also check out your bank's loan-to-deposit ratio.  Just pull up the Schedule RC-Balance Sheet, and know that Farrell and Nelson identify 95 to 105 percent as an ideal range.

Don't forget to set up a Google Alert featuring your bank's name, either.  Using emails, this should keep you up to date on all the latest relevant news and rumors.

Finally, even if something terrible happens to your bank, remember that the bailout bill allows the FDIC to protect $250,000 of your money.  Simply be prepared to wait a few days while the paperwork gets straightened out, and consider using the time and these same methods to decide where to put the cash next.