Sunday, July 9, 2017

What is CAMELS ratings?



Answer:
The CAMELS ratings is a supervisory rating of the bank's overall condition used to classify the nation’s banks. This rating is based on financial statements of the bank and on-site examination by regulators. The scale is from 1 to 5 with 1 being strongest and 5 being weakest.
The components of a bank's condition that are assessed
  • (C) Capital adequacy,
  • (A) Asset quality,
  • (M) Management,
  • (E) Earnings,
  • (L) Liquidity and
  • (S) Sensitivity to market risk

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