The FDIC developed an acroynm for the composite ratios it runs to “rate” the financial health of its member banking concerns.   An index, ranging from one to five is calculated and the FDIC premium charged to the institution is commensurate with its CAMELS rating.  “CAMELS” stands for:

  • Capital Adequacy
  • Asset Quality
  • Management
  • Earnings
  • Liquidity
  • Sensitivity

The Federal Reserve Bank of San Francisco explains the CAMELS ratings and the highly-sensitive nature of the findings:

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