1. CAMELS
 CAPITAL
 ASSET QUALITY
 MANAGEMENT
 EARNINGS
 LIQUIDITY
 SENSITIVITY TO MARKET RISK

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. ASSET QUALITY
 To determine the quality of assets both
on and off balance sheet.
 Assessment through:
 Composition
 Concentration
 Provisioning

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. 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. LIQUIDITY
 To determine the liquidity position of
the bank.
 Assessment through:
 Liquidity ratios
 Scenario analysis

7. SENSITIVITY TO MARKET
RISK
 To determine how much bank is
exposed to market risk.
 Assessment through:
 Gap analysis
 Sensitivity analysis