Camel Rating Of Brac Bank free essay sample

Camels rating system is a common phenomenon for all banking system all over the world. It is used in all over the country in the world. It is mainly used to measure a ranking position of a bank on the basis of few criteria. Camels rating system is an international bank-rating system where bank supervisory authorities rate institutions according to six factors. The six factors are represented by the acronym CAMELS. The six factors examined are as follows: C Capital adequacy A Asset quality M Management quality E Earnings L Liquidity S Sensitivity to Market Risk Bank supervisory authorities assign a score on a scale of one (best) to five (worst) for each factor to each bank. If a bank has an average score less than two it is considered to be a highquality institution, while banks with scores greater than three are considered to be less-thansatisfactory establishments. The system helps the supervisory authority identify banks that are in need of attention. Origin of Camels Rating System: There were many banks rating system available in the world.