CAMELS rating definition

CAMELS rating

Soundness of a bank measured on a scale of 1 (strongest) to 5 (weakest). Bank examiners (trained and employed by the country's central bank) award these ratings on the basis of the adequacy and quality of a bank's Capital, Assets (loans and investments), Management, Earnings, Liquidity, and Sensitivity (to systemic-risk). Banks with a rating of 1 are considered most stable; banks with a rating of 2 or 3 are considered average, and those with rating of 4 or 5 are considered below average, and are closely monitored to ensure their viability. These ratings are disclosed only to the bank's management and not to other banks or the general public. CAMELS rating is an advanced version of the older MACRO rating. See also bank examination.

CAMELS rating is in the Banking, Commerce & Finance, Disaster Planning & Risk Management and Investing subjects.

CAMELS rating appears in the definitions of the following terms: MACRO rating and bank examination

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