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Camels rating

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Camels rating

  1. 1. CAMELS CAPITAL ASSET QUALITY MANAGEMENT EARNINGS LIQUIDITY SENSITIVITY TO MARKET RISK
  2. 2. CAPITAL To determine whether the banks capital position is adequate to support the level of current and anticipated business activity and associated risks. Assessment through:  Composition and quality of capital  Adequacy of capital  Access to capital  Repayment of capital
  3. 3. ASSET QUALITY To determine the quality of assets both on and off balance sheet. Assessment through:  Composition  Concentration  Provisioning
  4. 4. MANAGEMENT To determine whether Board of Directors have the required skills, experience and integrity to manage the business. Assessment through:  Fitness and proprietary  Board composition  Non executive directors  Cultural attitudes  Corporate planning and strategy
  5. 5. EARNINGS To determine the profitability and earnings profile of the bank and evaluate the quality and reliability of banks earnings. Assessment through:  Profitability and earnings performance  Profit plan and budget  Sustainability
  6. 6. LIQUIDITY To determine the liquidity position of the bank. Assessment through:  Liquidity ratios  Scenario analysis
  7. 7. SENSITIVITY TO MARKETRISK To determine how much bank is exposed to market risk. Assessment through:  Gap analysis  Sensitivity analysis

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