There is a lot of information about your bank, but not all of it is public. Understanding the difference between what you can see and what regulators know is key to gauging your bank's health.
What is the CAMELS Rating?
The CAMELS rating is the confidential report card that federal regulators give to a bank based on a comprehensive on-site examination. It is the most in-depth assessment of a bank's safety and soundness. The acronym stands for the six areas evaluated:
- Capital Adequacy
- Asset Quality
- Management
- Earnings
- Liquidity
- Sensitivity to Market Risk
Regulators assign a score from 1 (Strong) to 5 (Critically Deficient) for each category and an overall composite score. A bank with a score of 4 or 5 is considered a significant supervisory concern.
Are CAMELS Ratings Public?
No. By law, the CAMELS rating and the detailed examination report are considered confidential supervisory information. The FDIC, Federal Reserve, and Office of the Comptroller of the Currency (OCC) do not release these scores to the public. This confidentiality was established to prevent premature bank runs and allow regulators to address issues discreetly.
However, Brookings Institution research suggests that while total secrecy was once the norm, the lack of transparency creates a "level playing field" issue, as market participants are often left in the dark.
What Public FDIC Data is Available?
While you cannot see the specific CAMELS rating, the FDIC does release a wealth of aggregated data that consumers can use to assess a bank's condition. One key piece is the list of "Problem Banks." The FDIC publishes the total number and aggregate assets of banks with a CAMELS rating of 4 or 5 in its Quarterly Banking Profile. This information tells you the size of the "shadow" of troubled institutions, even if you don't know the names.
Also,, the Call Report (Schedule RC and RI) is a public document. Savvy consumers and analysts can review a bank's publicly filed reports to track its financial health. A bank with large losses, low capital, or a high percentage of non-performing loans is likely in trouble, even if its confidential CAMELS rating is hidden.