Define CAMELS rating and write down the composite ratings of this

 A CAMELS rating is an international bank-rating system where bank supervisory authorities rate institutions according to six factors. These are

C - Capital adequacy

A - Asset quality

M - Management quality

E - Earnings

L - Liquidity

S - Sensitivity to Market Risk

 

 Bank supervisory authorities assign each bank a score on a scale of one (best) to five (worst) for each factor. The system helps the supervisory authority identify banks that are in need of attention.

  

The composite rating:

Rating	Composite Range	Description
1	1 - 1.4	Strong: Highest rating is indicative of performance is higher
2	1.5 - 2.4	Satisfactory: Performance is average or above that adequately provides for safe and sound operation
3	2.5 - 3.4	Fair: It is not satisfactory nor unsatisfactory but characterized by performance of below average quality.
4	3.5 - 4.4	Marginal: performance is below average. It might evolve into weakness that could threat the viability if not changed.
5 & 6	4.5 - 5 & 6	Unsatisfactory: Performance is critically deficient that need immediate remedial attention.