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Do you know CAMELS RATING SYSTEM?

Important banking qna for banking aspirants, which is helpful in banking exam.

Jan 31, 2015 16:55 IST
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This is a rating system of RBI for banks recommended by Padmanabhan Committee in May 2006. As per the recommendations, the banks should be rated on a five point scale of A to E widely on the lines of international CAMELS rating model. The committee has suggested that supervision of banks should focus on defined parameters of soundness, financial, managerial and operational efficiency.

C- Capital Adequacy

A-Assets Quality or Level of NPA

M- Management Effectiveness.

E- Earning or Profitability.

L- Liquidity

S- System and Controls.

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