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    Question

    TheĀ  ā€˜CAMELS’  approach is a risk assessment

    method. What does C stand for in CAMELS?Ā 
    A Capital adequacy Correct Answer Incorrect Answer
    B Credit Correct Answer Incorrect Answer
    C Core Banking System Correct Answer Incorrect Answer
    D Customisation Correct Answer Incorrect Answer
    E Corporate Correct Answer Incorrect Answer

    Solution

    The CAMELS rating system is a tool used to assess a financial institution's risk profile and financial health . It assess on following parameters: Ā  C – Capital Adequacy Ā  A – Asset quality Ā  M – Management Ā  E – Earning s Ā  L – Liquidity Ā  S – Systems /Sensitivity Ā 

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