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Art [367]
3 years ago
8

Define CAMELS, why it was created and how the system works, and give the names of six factors of CAMELS

Business
1 answer:
bearhunter [10]3 years ago
5 0
  1. Capital adequacy
  2. Asset quality
  3. Management
  4. Earnings
  5. Liquidity
  6. Sensitivity

CAMELS is an international rating system to rate banks, it was created in the United States as a supervisory rating system.

In order to ensure their financial strength, banks have periodic examinations by a Office of the Comptroller of the Currency. Bank examiners issue CAMELS, a numerical rating to the bank as a result of the examination, examiners score each bank in the six factors listed above. Banks score between 1 and 5 in each category (1 being the highest).

Hope this helps, HAVE A BLESSED AND WONDERFUL DAY! As well as a great Valentines Day! :-)  

- Cutiepatutie ☺❀❤

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Note: The answers (options) attached this question belongs to another question

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Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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