C A M E L

If you are puzzled by some of the initials and acronyms you hear tossed around financial institutions, you aren't alone! We have heard more than we want to about CRA, BSA, ADA, and BPA-(Community Reinvestment Act, Bank Secrecy Act, Americans with Disabilities Act, and Bank Protection Act, respectively).

Have you heard someone talking about the CAMEL rating? That has nothing whatsoever to do with Save the Whales, or other similar programs!

CAMEL is an acronym that comes from the key areas of your financial institution's safety and soundness examination. It stands for Capital adequacy, Asset quality, Management, Earnings, and Liquidity.

Unlike the ratings financial institutions receive for CRA, the CAMEL ratings are not published, nor even revealed to the public.

Copyright © 1991 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 2, No. 10, 11/91