Capital adequacy refers to the amount of capital the financial institutions has to hold as required by its financial regulator
Sensitivity refers to effect on bank due to market changes. In other terms it refers to market risk.
Asset quality evaluates the quality of asset/loan the bank offers. The assets of a bank include cash, government securities, investments, real estates and interest earning loans.
Assessment of management determines ability of an institution to diagnose and react to financial stress.
Ratings on earnings are based on the financial institution's ability to create returns on its assets. These returns enable the institution to expand, retain competitiveness, and provide adequate capital.
To meet unexpected withdrawals from depositors without affecting the daily operations, the bank must maintain liquid cash and assets that can be easily converted into cash.