Question
RBI has been using CAMELS based supervision for banks.
Which of the following is not included in CAMELS?ÂSolution
RBI carries on site inspection of banks on an annual basis. The Annual Financial Inspection (AFI) focusses on statutorily mandated areas of solvency, liquidity and operational health of the bank. It is based on internationally adopted CAMEL model modified as CAMELS, i.e. •Capital Adequacy •Asset Quality •Management •Earning •Liquidity •Systems and ControlÂ
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