CAMEL rating is a system that -
A
Assigns a numerical rating to banks
B
Ranks camels according to their quality
C
Ranks camels according to their price
D
Allows banks to operate in developing country
Correct Answer: Assigns a numerical rating to banks
The CAMELS rating system assesses the strength of a bank through six categories. CAMELS is an acronym for capital adequacy, assets, management capability, earnings, liquidity, sensitivity. The rating system is on a scale of one to five, with one being the best rating and five being the worst rating.