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Federal Reserve Bank
OF DALLAS
ROBERT

D. M c T E E R , J R .

DALLAS, TEXAS
75265-5906

p re s id e n t
AND CHIEF EX ECU TIV E O F F IC E R

February 18, 1997

Notice 97-18

TO:

The Chief Executive Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District

SUBJECT
Adoption of a Revised Uniform
Financial Institutions Rating System
DETAILS
The Board of Governors of the Federal Reserve System has adopted a revised
interagency Uniform Financial Institutions Rating System. Commonly known as the CAMEL
rating system, it now includes an increase in the emphasis on risk management processes and the
addition of a sixth rating component for sensitivity to market risk.
The existing CAMEL rating system produces a composite rating of an institution’s
overall condition and performance by assessing five components: Capital adequacy, yisset
quality, Management administration, .Earnings, and liquidity. The updated rating system now
will be referred to as the CAMELS rating system, to include Sensitivity to market risk.
The Uniform Financial Institutions Rating System, which was effective January 1,
1997, appeared in this Bank’s Notice 96-133, dated December 30, 1996.
MORE INFORMATION
For more information regarding the updated rating system, please contact Gary
Krumm at (214) 922-6218, or Julie Mills at (214) 922-6229. For additional copies of this Bank's
notice, please contact the Public Affairs Department at (214) 922-5254.
Sincerely yours,

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333 -4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston
Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)