Bank condition
From Wikipedia, the free encyclopedia
Bank condition is a financial term used to represent the probability of failure of a bank. It is a random variable and the true probability of failure is unknown to depositors as well as regulators. Even the bank managers themselves who manage the risky asset portfolio of the bank might not have an accurate information about the probability of failure.
Notice that the estimation of the bank managers are the closest to the true probability of failure, then comes the evaluation of bank regulators and finally that of the investors.
CAMELS ratings are intended to reflect the evaluation of regulators and supervisors about bank condition. These evaluations are not publicly released but only given to the bank managers.
[edit] See Also
 |
This article is uncategorized.
Please help improve this article by adding it to one or more categories, so it may be associated with related articles (how?). Please remove this tag after categorizing, but not before. |
