Question

CAMELS Rating of Banks means

• A. Capital adequacy, Asset quality, Management capability, Economic, Liquidity and Sensitivity to market risk
• B. Capital adequacy, Asset quality, Management capability, Earnings, Liquidity and Sensitivity to market risk
• C. Capital adequacy, Asset quality, Management capability, Economic, Liquidity and Security to market risk
• D. Capital efficiency, Asset quality, Management capability, Eamings, Leverage and Sensitivity to market risk

Answer 1

Answer:

B. Capital adequacy, Asset quality, Management capability, Earnings, Liquidity and Sensitivity to market risk

• The CAMELS rating system assesses the strength of a bank through six categories. CAMELS is an acronym for capital adequacy, assets, management capability, earnings, liquidity, sensitivity. The rating system is on a scale of one to five, with one being the best rating and five being the worst rating.