OVERVIEWUS bank regulators have continued to enhance their oversight of the major areas of risk to banks. The major risk evaluation and rating programs that have been introduced are CAMELS, CCAR and CLAR. This presentation provides for a thorough review and understanding of these programs. CAMELS is one of the most significant evaluation methodologies for banks employed by US regulators, namely the Federal Reserve Bank, Comptroller of the Currency and Federal Deposit Insurance Corporation.
LEARNING OBJECTIVES
With respect to CAMELS, areas covered are:
Identifying the CAMELS components
Assessment of capital quality
Assessment of liquidity quality
Assessment of sensitivity to market risk quality
1. Particular focus on interest rate risk
Component rating methodology
1. Rating denotations
2. Rating formulation
3. Proposed/required actions
Composite rating methodology
1. Rating denotations
2. Rating formulation
3. Rating implications
WHY SHOULD YOU ATTEND
The US bank business environment has experienced a variety of issues and problems over the years and US regulators are diligent in ensuring that a bank meets a required standard in key operating areas of a bank which, if not met or are considered substandard, may impact the ongoing viability of a bank. Management responsibility to the subject areas of the CAMELS, CCAR, and CLAR evaluation exists with a bank’s:
Board of directors
Executive management
Senior business management
However, the specific management of each subject area rests with the staff that is charged with the responsibility of meeting and maintaining the standards set by the regulators for each component.
WHO WILL BENEFIT?
EVP/SVP – commercial banks
CFOs – commercial banks
Controllers– commercial banks
Treasury managers – commercial banks
Risk managers – commercial banks
Compliance managers – commercial banks
Auditors – commercial banks
SPEAKER
Robert Geary is the founder of Greenwich Risk Management Advisory Services "LLC" and services as the principal consultant on many of the firm's consultancy mandates. He has been a banking and finance industry professional for 43 years with 34 years serving in a variety of senior Treasury, financial market, asset management, and risk management roles at JP Morgan Chase & Co.
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