Bank condition
Encyclopedia
Bank condition is a random variable
used to represent the probability of failure of a bank. The true probability of failure is unknown to depositors.
CAMELS ratings
in U.S. are intended to reflect the evaluation of regulators and supervisors about bank condition. These evaluations are not publicly released but only given to the bank managers.
Random variable
In probability and statistics, a random variable or stochastic variable is, roughly speaking, a variable whose value results from a measurement on some type of random process. Formally, it is a function from a probability space, typically to the real numbers, which is measurable functionmeasurable...
used to represent the probability of failure of a bank. The true probability of failure is unknown to depositors.
CAMELS ratings
CAMELS ratings
The CAMELS ratings or Camels rating is a United States supervisory rating of the bank's overall condition used to classify the nation’s fewer than 8,000 banks. This rating is based on financial statements of the bank and on-site examination by regulators like the Federal Reserve, the Office of the...
in U.S. are intended to reflect the evaluation of regulators and supervisors about bank condition. These evaluations are not publicly released but only given to the bank managers.
See also
- Market disciplineMarket disciplineBuyers and sellers in a market are said to be constrained by market discipline in setting prices because they have strong incentives to generate revenues and avoid bankruptcy...
- Too-big-to-fail
- Basel IIBasel IIBasel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision...
- Bank regulationBank regulationBank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. This regulatory structure creates transparency between banking institutions and the individuals and corporations with whom they conduct business, among other things...
- CAMELS ratingsCAMELS ratingsThe CAMELS ratings or Camels rating is a United States supervisory rating of the bank's overall condition used to classify the nation’s fewer than 8,000 banks. This rating is based on financial statements of the bank and on-site examination by regulators like the Federal Reserve, the Office of the...