The CAMEL rating system is a method of evaluating the health of credit unions by the National Credit Union Administration(NCUA). The rating, adopted by the NCUA in 1987, is based upon five critical elements of a credit union's operations:[1]
This rating system is designed to take into account and reflect all significant financial and operational factors examiners assess in their evaluation of a credit union's performance. Credit unions are rated using a combination of financial ratios and examiner judgment.[1]
Banking institutions use a similar CAMELS ratings for evaluation.