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The liquidity component of the CAMELS rating refers to Answer Regulators' concern about how a bank's earnings would change if economic conditions change. Excessive borrowing
The liquidity component of the CAMELS rating refers to
Answer Regulators' concern about how a bank's earnings would change if economic conditions change. | ||
Excessive borrowing by banks from outside sources, such as the discount window | ||
A bank's sensitivity to financial market conditions. | ||
Monitoring the type of loans that are given, the bank's process for deciding whether to provide loans, and the credit rating of debt securities that it purchases. | ||
How well the bank's management would detect its own financial problems |
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