Financially, um...turn your head and cough. A bank examination is a review process to ensure that a bank or lending institution is financially stable, as well as in compliance with federal banking regulations.
The CAMELS is a system used to rate banks.
The components of a bank's condition that are assessed by the CAMELS system are:
· (C)apital adequacy
· (A)ssets
· (M)anagement Capability
· (E)arnings
· (L)iquidity (also called asset liability management)
· (S)ensitivity (sensitivity to market risk, especially interest rate risk)
Ratings are given from 1 (best) to 5 (worst) in each of the above categories.
A bank in a rural area was going through its annual review. At the conclusion of the review, the examiner came in to present his findings. He said "This bank needs to adopt a more conservative approach to lending. You can't allow loans for exotic animals!" The bank officers were confused, "We don't understand. What are you talking about?" The examiner slapped down a sheet of paper and pointed to a transaction. "You approved a loan for this rancher to buy 500 exotic birds, ewes!" The bank guys waited a moment trying to figure out why the examiner pronounced the word u-wees. Then the bank president spoke up, "Sir, I think you mean kiwis. The rancher bought ewes; a ewe is a female sheep."
Related or Semi-related Video
Finance: What is a CUSIP Number?119 Views
Finance, a la shmoop. What is a CUSIP number? Close that's a Cusack number
867-53-09, yeah we know there. So yeah you know when you go to the grocery
store and the cashier swipes your apples eight times across that little bar code [Apple being scanned]
reader thingy and it doesn't work again and again and again and then she finally [Error coming up on the screen]
pulls back the plastic from where the Apple was tagged hunts for her glasses [Cashier putting on her glasses]
and then visually finds the number associated with that Apple and then just
manually types it in. Well that's the fruit equivalent of a CUSIP number [Guy talking in a supermarket]
A CUSIP number is well just that only applied to securities, stocks, bonds even
muni bonds. CUSIP stands for committee on uniforms security identification [The meaning of each letter is shown]
procedures, and is basically just the serial number system of securities, but [CUSIP definition written on a 100 dollar bill]
has nine digits, the first six represent the original issuer of the security like
coca-cola shares when it went public a gazillion years ago. Then the next two [The fix 6 digits are highlighted]
characters refer to that type of security at hand like is it a basic
equity bond, muni bond and the ninth digit is riboflavin yeah it's just there
to be sure the other digits are all accurate and assures that there's no [The 3 digits meaning are shown]
replication in any of the other CUSIP index number sets. So yeah CUSIP numbers
make the securities easier to track because it's awfully hard to get a
microchip into one of them. [Microchip pulled out of a bond certificate]
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