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Federal Deposit Insurance Corporation

Division of Supervision

550 17th Street NW, Washington, DC 20429

Proposed Revisions to Camel Rating System

July 24, 1996


Request for Comment on Proposed Revisions to the
FFIEC's Uniform Financial Institutions Rating System


On July 9, 1996, the Federal Financial Institutions Examination Council (FFIEC) proposed
revisions to the agency's Uniform Financial Institutions Rating System, commonly referred to as
the "CAMEL" rating system. A copy of the Federal Register notice containing the proposed
revisions is attached. Comments are due by September 16, 1996.
The proposed revisions update the rating system to reflect changes that have occurred in the
financial services industry and in supervisory policies and procedures since the rating system
was first adopted in 1979. The proposed changes include:


reformatting and clarifying the component rating descriptions;
adding a sixth rating component addressing sensitivity to market risks;
increasing emphasis on the quality of risk management processes in each of the rating
components, particularly in the management component;
adding language in the composite rating definitions to parallel the proposed changes in the
component rating descriptions; and
explicitly identifying the risk types that are to be considered when assigning component



The CAMEL rating system is an internal supervisory tool for evaluating the soundness of
financial institutions on a uniform basis and for identifying those institutions requiring special
supervisory attention or concern. State banking departments and the Farm Credit Administration
also use the rating system.
Comments on the proposed revisions should be mailed to Joe M. Cleaver, Executive Secretary,
FFIEC, 2100 Pennsylvania Avenue, N.W., Suite 200, Washington, D.C. 20037, or may be sent
by facsimile transmission to (202) 634-6556.


For further information on the proposed revisions, please contact Daniel M. Gautsch,
Examination Specialist in the Division of Supervision's Office of Policy, at (202) 898-6912.
Nicholas J. Ketcha Jr.

Attachment: PDF Format (52 kb, PDF help or hard copy),HTML Format
Distribution: FDIC-Supervised Banks (Commercial and Savings)

Last Updated 03/06/2008