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Camels Ratings Defs Flashcards

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1
Q

subject the financial institution to potential losses that, if left unchecked, may threaten its viability.

A

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2
Q

The institution has access to sufficient sources of funds on acceptable terms to meet present and anticipated liquidity needs.

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3
Q

the development of significant negative trends, nominal or unsustainable earnings, intermittent losses, or a substantive drop in earnings from the previous years.

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4
Q

Asset quality in such institutions is of minimal supervisory concern.

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5
Q

indicates a satisfactory capital level relative to the financial institution’s risk profile.

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6
Q

Modest weaknesses may be evident in funds management practices.

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7
Q

require immediate action by the board and management to preserve the soundness of the institution.

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8
Q

market risk sensitivity is well controlled

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9
Q

Institutions rated this require immediate external financial assistance to meet maturing obligations or other liquidity needs.

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10
Q

indicates strong liquidity levels

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11
Q

present an imminent threat to the institution’s viability.

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12
Q

indicates deficient management and board performance

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13
Q

there is only moderate potential that the earnings performance or capital position will be adversely affected.

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14
Q

there is significant potential that the earnings performance or capital position will be adversely affected.

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15
Q

indicates management and board performance that need improvement

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16
Q

Indicates well-developed funds management practices

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17
Q

The levels of risk and problem assets are significant, inadequately controlled,

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18
Q

Earnings that need to be improved.

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19
Q

Risk management practices are satisfactory for the size, sophistication, and market risk accepted by the institution.

A

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20
Q

The level of earnings and capital provide inadequate support for the degree of market risk taken by the institution.

A

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21
Q

Earnings are more than sufficient to support operations and maintain adequate capital and allowance levels after consideration is given to asset quality, growth, and other factors affecting the quality, quantity and trend of earnings.

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22
Q

Problems and significant risks are inadequately identified, measured, monitored, or controlled and now threaten the continued viability of the institution

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23
Q

there is high potential that the earnings performance or capital position will be adversely affected

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24
Q

Risk exposure is commensurate with capital protection and management’s abilities.

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25
Earnings are insufficient to support operations and maintain appropriate capital and allowance levels.
4
26
Identified weaknesses are minor in nature and risk exposure is modest in relation to capital protection and management's abilities.
1
27
Banks have unacceptable control of market risk or the level of market risk taken by the institution is an imminent threat to its viability.
5
28
Banks need to improve market risk control
3
29
Indicates risk management practices that are inadequate considering the nature of an institution’s activities.
4
30
Risk management practices need to be improved given the size, sophistication, and level of market risk accepted by the institution.
3
31
critically deficient asset quality or credit administration practices
5
32
The capabilities of management or the board of directors may be insufficient for the type, size, or condition of the institution.
3
33
The level of earnings and capital may not adequately support the degree of market risk taken by the institution.
3
34
indicates critically deficient management and board performance or risk management practices.
5
35
Institutions rated this may lack ready access to funds on reasonable terms
3
36
Indicates earnings that are strong
1
37
a critically deficient level of capital
5
38
may evidence significant weaknesses in funds management practices.
3
39
Earnings may not fully support operations and provide for the accretion of capital and allowance levels in relation to the institution's overall condition, growth, and other factors affecting the quality, quantity, and trend of earnings.
3
40
Management and the board of directors have not demonstrated the ability to correct problems and implement appropriate risk management practices.
5
41
less than satisfactory level of capital that does not fully support the institution's risk profile.
3
42
Indicates deficient liquidity levels
4
43
The rating indicates a need for improvement, even if the institution's capital level exceeds minimum regulatory and statutory requirements.
3
44
Earnings that are relatively static, or even experiencing a slight decline,
2
45
The level of earnings and capital provide adequate support for the degree of market risk taken by the institution.
2
46
Immediate assistance from shareholders or other external sources of financial support is required.
5
47
Risk management practices are strong for the size, sophistication, and market risk accepted by the institution.
1
48
Replacing or strengthening management or the board may be necessary.
4
49
indicates risk management practices that are less than satisfactory given the nature of the institution’s activities.
3
50
The level of earnings and capital provide substantial support for the degree of market risk taken by the institution.
1
51
Risk management practices are deficient for the size, sophistication, and level of market risk accepted by the institution.
4
52
Banks have unacceptable market risk control or there is high potential that the earnings performance or capital position will be adversely affected.
4
53
Generally, banks rated this number will have earnings well above peer group averages.
1
54
Institutions so rated may be characterized by erratic fluctuations in net income or net interest margin,
4
55
There is generally a need to improve credit administration and risk management practices.
3
56
There is generally a need to improve credit administration and risk management practices.
3
57
a deficient level of capital.
4
58
Market risk sensitivity is adequately controlled
2
59
Assistance from shareholders or other external sources of financial support may be required.
4
60
The institution has reliable access to sufficient sources of funds on favorable terms to meet present and anticipated liquidity needs.
1
61
indicates earnings that are deficient.
4
62
Indicates inadequate funds management practices
4
63
Institutions rated this may not have or be able to obtain a sufficient volume of funds on reasonable terms to meet liquidity needs.
4
64
indicates satisfactory management and board performance and risk management practices relative to the institution’s size, complexity, and risk profile.
2
65
Banks have unacceptable control of market risk or the level of market risk taken by the institution is an imminent threat to its viability.
5
66
indicates liquidity levels or funds management practices in need of improvement.
3
67
Management and the board have demonstrated the ability to promptly and successfully address existing and potential problems and risks.
1
68
Problems and significant risks are inadequately identified, measured, monitored, or controlled and require immediate action by the board and management to preserve the soundness of the institution.
4
69
Control of market risk sensitivity needs improvement
3
70
Minor weaknesses may exist, but are not material to the safety and soundness of the institution and are being addressed.
2
71
Minimal potential that the earnings performance or capital position will be adversely affected
1
72
viability of the institution may be threatened.
4
73
strong risk management practices relative to the institution’s size, complexity, and risk profile.
1
74
Problems and significant risks are inadequately identified, measured, monitored, or controlled and now threaten the continued viability of the institution
5
75
indicates strong performance by management and the board of directors
1
76
institution's viability is threatened.
5
77
A financial institution with earnings rated this is experiencing losses that represent a distinct threat to its viability through the erosion of capital.
5
78
In general, significant risks and problems are effectively identified, measured, monitored, and controlled.
2
79
indicates satisfactory asset quality and credit administration practices.
2
80
financial institutions with deficient asset quality or credit administration practices.
4
81
Risk management practices are wholly inadequate for the size, sophistication, and level of market risk accepted by the institution.
5
82
The level of problems and risk exposure is excessive.
4
83
indicates strong asset quality and credit administration practices.
1
84
The level and severity of classifications and other weaknesses warrant a limited level of supervisory attention.
2
85
asset quality or credit administration practices are less than satisfactory.
3
86
Replacing or strengthening management or the board of directors is necessary.
5
87
Earnings are sufficient to support operations and maintain adequate capital and allowance levels after consideration is given to asset quality, growth, and other factors affecting the quality, quantity and trend of earnings.
2
88
earnings that are critically deficient.
5
89
may receive a this rating provided the institution's level of earnings is adequate in view of the assessment factors.
2
90
Problems and significant risks may be inadequately identified, measured, monitored, or controlled.
3
91
indicates liquidity levels or funds management practices so critically deficient that the continued viability of the institution is threatened.
5
92
Banks have unacceptable market risk control or there is high potential that the earnings performance or capital position will be adversely affected.
4
93
The level and severity of classified assets, other weaknesses, and risks require an elevated level of supervisory concern.
3
94
indicates satisfactory liquidity levels and funds management practices.
2
95
All significant risks are consistently and effectively identified, measured, monitored, and controlled.
1
96
may evidence significant weaknesses in funds management practices.
3
97
Trends may be stable or indicate deterioration in asset quality or an increase in risk exposure.
3
98
Earnings that are satisfactory
2

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