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 CORAL GABLES, Fla., March 10 /PRNewswire/ -- Bauer Financial Reports, Inc., a bank research and rating firm, advises consumers and business not to be lulled into a false sense of security simply because the banking crisis appears to be over. "The biggest concern for bank customers is not that their bank will fail," said Paul A. Bauer, president of the research firm, "but that their bank will face restrictions because of its poor performance or capitalization that directly affect the bank's customers."
 Banks and thrifts are assigned one of five regulatory classifications: Well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Although only the last category, critically undercapitalized banks and thrifts, are subject to government takeover, all the undercapitalized and significantly undercapitalized banks are required to take "prompt corrective action" to correct their deficiencies.
 These banks must either raise new capital or shrink their size. Shrinking a bank's size involves reducing or not making new loans and reducing or not taking new deposits.
 A customer dealing with an undercapitalized bank can suddenly find his line of credit or revolving loan reduced or canceled. He may find that his request for a home equity loan is denied and falsely believe that the fault is his -- when in fact it may simply be the bank's effort to comply with its corrective action requirement. This can cause a tremendous inconvenience to a consumer and has sent business firms scrambling for new sources of funds.
 Consequently, every consumer or business borrower should monitor the condition of his bank and take steps to make alternative plans, where warranted.
 Bauer Financial Reports offers a variety of services to make this information available to consumers. As a free service, we will tell consumers if their bank or thrift fails to meet any current federal capital requirements. Those that fail are required to take prompt corrective (restrictive) actions.
 If the caller wants more specific information on his bank, we will provide the bank's star-rating and key financial data for a $10 fee for the first institution and $2 for each additional institution. (Some banks sponsor this program in which case that information is also free.)
 Or, of the consumer prefers to look at the ratings of all the banks in his area we recommend our Statewide Bank & Thrift Lists, which list and rate all the banks operating in any one state. They're available for $29 each, postpaid, ($39 for Texas and Illinois).
 To learn more about your bank and our services call Bauer's BankRater(R) service toll free number: 800-388-6686, Monday through Friday, 8 a.m. to 8 p.m., Eastern time.
 -0- 3/10/93
 /CONTACT: Brienne Jorgensen of Bauer Financial Reports, 305-444-3125, or fax, 305-441-0691/

CO: Bauer Financial Reports, Inc. ST: Florida IN: FIN PUB SU:

AW-SS -- FLFNS1 -- 4763 03/10/93 07:32 EST
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Publication:PR Newswire
Date:Mar 10, 1993

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