There have been recent press accounts about putting a very large depository institution on the FDIC’s list of “Problem Banks.” As of 3/31/18 the institution placed on that inauspicious list had assets of $42.5 billion and it was “well capitalized.” So, what happened?
The inclusion on the list of problem banks for that institution was primarily the result of regulatory examinations that followed a system called CAMELS. The initials stand for the six CAMELS components which are:
In the US the regulatory framework is widespread. The Federal Financial Institutions Examination Council (FFIEC) is the umbrella body for the various regulators:
The FFIEC regulatory responsibilities are satisfied, in large part, by on-site examinations, that among other things, focus on the Uniform Financial Institutions Rating System (UFIRS) also known as the CAMELS rating system. Attend this critical Bank Accounting Webinar to better understand the CAMELS rating system and what your managers and staff need to know for ongoing regulatory compliance.
Date of Event
Tuesday, July 31, 2018
About Paul Sanchez
Paul J. Sanchez, CPA, CBA, CFSA conducts a CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University – C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors.