Camels rating system investopedia
Definition. CAMELS Rating Model is the informal name for a supervisory rating system developed by U.S. Financial Regulators to classify a bank's overall solvency condition. The formal name is Uniform Financial Rating System.. The model was introduced in the US in 1979 and it is applied to every bank and credit union in the U.S. (approximately 8,000 institutions) and is also implemented outside CAMELS Rating System. A mnemonic device for the factors by which regulators determine banks' riskiness. The rating system goes on a scale from one to five, with one showing the least risk and five the most risk.