CAMEL Rating System
The CAMEL ratings system is a method of evaluating the health of credit unions by the National Credit Union Administration(NCUA). The rating, adopted by the NCUA in 1987, is based upon five critical elements of a credit union's operations:
The components of a bank's condition that are assessed:
- (C)apital adequacy
- (A)sset quality
- (M)anagement Capability
- (E)arnings
- (L)iquidity (Asset liability management)
Ratings are given from 1 (best) to 5 (worse) in each of the above categories.
This rating system is designed to take into account and reflect all significant financial and operational factors examiners assess in their evaluation of a credit union's performance. Credit unions are rated using a combination of financial ratios and examiner judgment.
Read more about CAMEL Rating System: CAMELS Rating, Rating 1, Rating 2, Rating 3, Rating 4, Rating 5, Ratings, Business Strategy / Financial Performance, Internal Controls, Other Management Issues, Interest Rate Risk, Liquidity Risk, Overall Asset/Liability Management
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