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What is the CAMELS system?
What does CAMELS stand for?
CAMELS stands for capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk.
What does that mean?
The CAMELS system is a rating system made in the U.S that is used by authorities to rate banks and other financial institutions that applies to every bank in the U.S.
So it's only in the U.S?
No, it is also used in Bangladesh.
How do the ratings work?
The ratings are assigned based on the financial statements of the bank or financial institution, helping the supervisory authorities to identify banks that have a regulatory concern.
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