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?