Definition of peer group

classification of commercial banks by asset size and other characteristics. The uniform bank performance reporting system classification of commercial banks by asset size and other characteristics. The uniform bank performance reporting system classifies banks by 20 different groups. Within each group, banks are compared to other banks of comparable size with respect to profitability (return on assets), and so on. Peer group analysis is used by banks to assess their financial performance vis-à-vis competing banks in their market. Peer groups are determined from bank size, location, and mix of business, and can have as few as five or six banks, in the case of money center banks, or hundreds of community banks.