CAMELS Rating System


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CAMELS Rating System

A mnemonic device for the factors by which regulators determine banks' riskiness. The rating system goes on a scale from one to five, with one showing the least risk and five the most risk. The factors break down as follows:

C - Capital Adequacy
A - Quality of Assets
M - Quality of Management
E - Earnings
L - Liquidity
S - Sensitivity of the Bank to Market Risk
References in periodicals archive ?
Ratings are deduced from a system commonly known as the CAMELS rating system.
The CAMELS rating system assesses banks according to capital, assets, management, earnings, liquidity, and sensitivity to market risk.
The expanded rating system is known as the CAMELS rating system.