Question

    Which of the following is NOT a component of the CAMELS

    rating system used for bank evaluation?
    A Capital Adequacy Correct Answer Incorrect Answer
    B Asset Quality Correct Answer Incorrect Answer
    C Management Quality Correct Answer Incorrect Answer
    D Earnings Correct Answer Incorrect Answer
    E Liquidity Coverage Ratio Correct Answer Incorrect Answer

    Solution

    CAMELS stands for Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity. LCR is part of Basel III liquidity standards, not CAMELS.

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