Camels Data Show Downturn's Roots in '98

By Rehm, Barbara A. | American Banker, March 22, 2001 | Go to article overview

Camels Data Show Downturn's Roots in '98


Rehm, Barbara A., American Banker


The industry's health -- as judged by Camels ratings assigned by federal bank and thrift examiners -- peaked in 1998 and has gradually deteriorated ever since.

Federal Deposit Insurance Corp. data compiled for American Banker showed that examiners reduced the Camels scores for 801 banks and thrifts last year but raised them for 551 -- a net negative change of 250 institutions. That's 3.73% of the 6,705 banks and thrifts examined in 2000. The Camels rating change was a negative 3.38% in 1999 and a negative 0.04% in 1998. For comparison, a net 329 banks and thrifts won higher Camels grades in 1997, or 4.12% of the 7,994 exams done that year.

Experts predicted the downward trend will continue, and even accelerate.

"I think it will, definitely, and faster as this slowdown continues," former FDIC Chairman L. William Seidman said in an interview Wednesday. "There is nobody that better reflects the economy than banks, except they are always a lagging indicator."

Mr. Seidman attributed the Camels downgradings to banks that finally tightened loan standards, forcing them to reclassify credits that had been granted in earlier, better economic times. "About 1998 is when the banks realized that prosperity was starting to erode their positions," he said. "Banks had loosened their standards because things looked too good. So the lower rankings are the result of their own tighter standards."

Camels scores are the industry's performance yardstick, and examiners assign a composite grade as well as individual scores on six components: capital, asset quality, management, earnings, liquidity, and sensitivity to risks (risk management). Camels scores range from 1 to 5, with 1 reserved for the industry's best performers.

Though the downward trend began in 1998, last year was the first in which scores in all six Camels categories were negative, meaning the number of downgradings exceeded the number of improved grades in each category. FDIC officials agreed that the negative trend is likely to continue but said the industry's overall performance is still relatively positive. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Camels Data Show Downturn's Roots in '98
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.