1. CAMELS Modeling and Scoring :Financial Institutional Risk Analysis Risk Training Session#1- Apr/2010 Dept. of Local Investments Department of Quantitative Risk Analytics
22. Well qualified staff at banks always add values to the latter’s brand equity, service quality and market reputation
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24. Group Support Ratings are a sign of Sponsor strength and group management quality; hence brand equity and management quality of the group to which the bank may belong, should also be assigned scores
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27. ROE - is the Return on Equity and also the opportunity costs of providing funds to different arms of the bank .Higher ROE should be assigned a higher score
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29. Fee Income to Net Income ratio should be analyzed separately
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31. ROE – Return on Equity should be analyzed in light of WACC – Weighted Average Cost of Capital.
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33. All return ratios should be assigned scores PIT –(Point in Time) and credit risk view should not ignore TTC – (Through the Cycle) performances
34. Return ratios and indicators should be assigned scores in light of other balance sheet ratio trends to check linearity and correlation with other risk drivers .
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36. Majority of the failed banks in our times, had defaulted on fixed rate commitments due to liquidity mismanagement
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38. Banks with higher CAR have higher liquidity resources and vice versa