Regulators overall evaluation of the riskiness of a depository institution is measured by the CAMELS rating.
CAMELS is a recognized international rating system which is used by bank supervisory authorities in order to rate different financial institutions according to six factors represented by its acronym.
Supervisory authorities of the banks assign each bank a score on the given scale. A rating of one is always considered as the best, and a rating of five is always considered as the worst for each factor.
Banks which are given an average score of less than two are considered as the high-quality institutions. Banks who are having scores greater than three are considered as less than satisfactory institutions.
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