Bank condition

Bank condition is a random variable used to represent the probability of failure of a bank. The true probability of failure is unknown to depositors.

CAMELS ratings in U.S. 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.

See also

• Market discipline
• Too-big-to-fail
• Basel II
• Bank regulation
• CAMELS ratings