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
C - Capital Adequacy
A - Quality of Assets
M - Quality of Management
E - Earnings
L - Liquidity
S - Sensitivity of the Bank to Market Risk
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