Discuss Forum
1. CAMEL rating is a system that -
- A. Assigns a numerical rating to banks
- B. Assigns a numerical rating to banks
- C. Assigns a numerical rating to banks
- D. Assigns a numerical rating to banks
Answer: Option A
Explanation:
The CAMELS rating system assesses the strength of a bank through six categories. CAMELS is an acronym for capital adequacy, assets, management capability, earnings, liquidity, sensitivity.
The rating system is on a scale of one to five, with one being the best rating and five being the worst rating.
Post your comments here: