Self-Banking Rate
Self-banking rate is the percentage of your total capital needs that you fund from your own banking system (via policy loans) rather than from external lenders. It measures how much of your financial activity flows through your policies versus through banks, credit unions, or other outside sources.
For example, if you need $100,000 in capital over a year and $60,000 comes from policy loans while $40,000 comes from a bank, your self-banking rate is 60%.
A higher self-banking rate means more of your capital activity is flowing through your banking system — which means more interest stays within a system you participate in as a mutual company policyholder, rather than flowing to external lenders.
Self-banking rate is one of several metrics Policy Stack tracks on the dashboard. It is calculated from:
- Total capital deployed via policy loans (numerator)
- Total capital deployed via all sources, including external financing (denominator)
Self-banking rate reflects what you have recorded in Policy Stack. If you have capital activity outside the app that is not tracked, the rate will reflect only the recorded portion.
This metric is descriptive — it shows the current state of your banking system usage. It is not a target or a score.
Related terms: Banking System, Policy Loan, Capital Deployment, Capital Velocity