What is CAMELS Rating ?
CAMELS ratings is a Banks rating used in United States.
The 6 alphabets in CAMELS denote the following:
1. C : Capital Adequacy Ratio
2. A: Asset Quality
3. M: Management Effectiveness
4. E: Earning (profitability)
5. L : Liquidity (using the ALM - Asset Liability Mismatch Considerations)
6. S: Sensitivity to market risk