CAMELS Rating System

CAMELS Rating System

The Board is proposing to add the ''S'' (Sensitivity to Market Risk) component to the existing CAMEL rating system and redefine the ''L'' (Liquidity Risk) component, thus updating the rating system from CAMEL to CAMELS. The proposal to add the ''S'' component will enhance transparency and allow the NCUA, State Supervisory Authorities, and federally insured credit unions to better distinguish between liquidity risk (''L'') and sensitivity to market risk (''S''). The amendment would also enhance consistency between the regulation of credit unions and other financial institutions. The Board is proposing to implement the addition of the ''S'' rating component and a redefined ''L'' rating as early as the first quarter of 2022. 

Read CUNA's Summary of the Request via this link.

CUNA submitted comments on May 10th - Read the letter