Question
In ‘CAMELS’ what does C stand
for?Solution
CAMELS is a supervisory rating model that analyses banks/financial institutions on 6 parameters as follows: C = capital adequacy A = Asset quality M = Management E = Earnings L = Liquidity S = Systems and controls In India, the CAMELS approach was recommended by S. Padmanabhan Committee (1995) and adopted by RBI for domestic banks since July 1998 However, in 2012, the KC Chakrabarty Committee recommended a Risk Based Supervisory (RBS) system
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