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Bangladesh, March 22 -- The central bank is going to use the latest technique by revising the CAMELS rating calculation method to get the exact picture of the country's commercial banks' financial health, officials said Thursday.
"We're working to introduce a new set of guidelines on calculation of the CAMELS rating from June next. It is being done in a bid to consolidate the banks' capital base in view of the ongoing global financial meltdown," a senior official of the Bangladesh Bank (BB) told the FE.
He also said: "We expect that the new CAMELS rating calculation will help mitigate the financial risks through improving the banks' shock absorbance capacity."
The CAMELS (Capital, Assets, Management, Earnings, Liquidity and Sensitivity to market risk) rating is a tool used to identify those banking companies which have problems and require increased supervision.
A good number of off-balance sheet items including letters of credit, inland bill...