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NCUA RIN: 3133-AF32 Publication ID: Spring 2021 
Title: ●CAMELS Ratings 

The NCUA Board (Board) issued a proposed rule to update its examination and risk rating framework.  Under the NCUA’s current examination and risk rating system known as CAMEL, examiners assign each credit union a composite rating based on their evaluation and rating of five components of an institution’s financial condition and operations. These components address a credit union’s capital adequacy, asset quality, management, earnings, and liquidity. In practice, the liquidity component also assesses the credit union’s asset liability management, which includes sensitivity to market risk. The Board proposed to amend provisions in the Code of Federal Regulations to reflect its decision to update the examination and risk rating system from CAMEL to CAMELS by adding a component that will allow examiners to rate sensitivity to market risk (S). The proposal to add to the S component will enhance transparency and allow the NCUA and federally insured credit unions to better distinguish between liquidity risk and sensitivity to market risk. The amendment would also enhance consistency between the regulation of credit unions and other financial institutions.

Agency: National Credit Union Administration(NCUA)  Priority: Substantive, Nonsignificant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 12 CFR 700 to 701    12 CFR 703 to 704    12 CFR 713   
Legal Authority: 12 U.S.C. 1752    12 U.S.C. 1755    12 U.S.C. 1766   
Legal Deadline:  None
Action Date FR Cite
NPRM  03/09/2021  86 FR 13494   
NPRM Comment Period End  05/10/2021 
Final Action  09/00/2021 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Information URL:  
RIN Data Printed in the FR: No 
Agency Contact:
Marvin Shaw
Senior Staff Attorney
National Credit Union Administration
1775 Duke Street,
Alexandria, VA 22314
Phone:703 518-6553
Fax:703 518-6569