Describe the CAMELS Rating System Used by Bank Examiners

question 5

Essay

Describe the CAMELS rating system used by bank examiners.

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Definitions:

Governor Cutout

A mechanism or setting in engines and machinery that limits the maximum speed or output to prevent damage or conserve energy.

Psi

Pounds per square inch, a unit of pressure used to quantify internal pressure, stress, or tensile strength.

Decelerometer

Measures the change in angle of a chassis when it is subjected to aggressive braking. This angle is also known as load transfer, dynamic pitch.

Inclinometer

Used to make angular measurements on driveline components and drivelines; may use a liquid level, laser, or electronic operating principle.