CAMEL rating is a system that
A
ranks camels according to their quality
B
ranks camels according to their price
C
allows banks to operate in a country
D
ensures compliance to Basel II
Correct Answer: ranks camels according to their quality
According to Investopedia, CAMELS is a recognized international rating system that bank supervisory authorities use in order to rate financial institutions according to six factors represented by its acronym. They are: Capital Adequacy. Asset Quality. Management. Earnings. Liquidity. Sensitivity.