Financial Institution Analysis - CAMELS Approach - Online

This product assesses different aspects of commercial banks operations to determine the soundness of its condition. The course describes the methodology used by examiners to assess these factors and the criteria for assigning ratings to a bank. With the help of a case study, the course demonstrates the method of identifying risks in internal processes, the evaluation of these risks, monitoring procedures and internal controls. The case study guides us on how component ratings and composite ratings are assigned by examiners to a bank.

This is an online self study course that can be globally accessed from any internet enabled computer.

Available TodayOnlineUSD$150
Instructional Method:
Self-Study
Level: Intermediate
CPE Credits: 16

Risk managers and analysts, treasurers, pension fund managers, auditors, controllers, regulators, legal and compliance staff.
Students will be able to:
  • Understand qualitative as well as quantitative factors for evaluating financial institutions
  • Identify various risks faced by financial institutions
  • Analyze financial institutions and assign overall ratings
Liquidity Management & Contingency Funding Plan - Online or equivalent knowledge
Overview of CAMELS
  • CAMELS (description of each component)
  • Purpose of a rating system
  • Case study

Earnings Ability

  • Different components of earnings
  • Importance of earnings to a bank's financial condition
  • Different earning ratios on a UBPR

Capital Adequacy

  • Purpose of capital
  • Factors for evaluating capital adequacy
  • Measurement of capital
  • Prompt Corrective Action

Asset Quality

  • Concept of asset quality
  • Impact of asset quality on bank's financial statements
  • Concepts of past-due and non-accrual loans
  • Analyzing asset quality ratios
  • Asset classification and types of asset classification
  • Rating of asset quality
  • Adequacy of allowance for loans and leases losses (ALL)
  • Purpose of capital
  • Factors for evaluating capital adequacy
  • Measurement of capital
  • Prompt Corrective Action

Management Competence

  • Management organization and function
  • Assessment of management
  • Evaluation factors and ratings
  • Case study

Liquidity Risk

  • Liquidity risk
  • Liquidity management
  • Factors for evaluating liquidity
  • Ratings
  • Case study for analysis

Sensitivity to Market Risk

  • Components of market risk
  • Identifying areas sensitive to market risk
  • Measuring Interest rate Risk
  • Evaluating and rating sensitivity to market risk

Composite Rating

  • Composite rating guidelines
  • Summary of component ratings
  • Assigning a composite rating to the case bank

JOB AIDS

  • Measurement Tools
  • Benchmarking Data

Calculator

  • Bank Ratio Analysis

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