Changes to NCUA’s rating system change to CAMELS—from CAMEL—starting April 1. Credit unions with examinations beginning on or after April 1 will fall under the new system.
The acronym stands for Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk.
Under the CAMELS rating system:
NCUA issued a Letter to Credit Unions (22-CU-05) recently with appendices including the updated CAMELS rating system and addressing common questions regarding the updated system.
Additional information can be found on CUNA’s CompBlog.