CAMELS Ratings
Assign a CAMELS rating to the bank you examining. These guidelines may help:
Strategic Decisions
Did the team’s decisions align with a stated strategy (e.g., risk tolerance, growth goals)?
Were their decisions influenced positively or negatively by the simulation environment (e.g., market supply & demand, competition)?
Consistency and Cohesion
Were decisions consistent across different CAMELS components, or did they appear disjointed?
How well did the team balance competing priorities like risk, earnings, and capital growth?
Responsiveness to Risk
Did management identify and mitigate emerging risks, such as asset quality concerns or liquidity shortfalls?
Were they proactive or reactive in addressing challenges?
Communication and Rationale
Did the team provide clear, logical explanations for their decisions during discussions?
Did they demonstrate an understanding of how their actions impacted the bank's overall performance?
