The 

CAMELS rating system assesses the strength of a bank through six categories. The CAMELS acronym
stands for "Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity."

The rating system is on a scale of one to five, with one being the best rating and five being the
worst rating. The strength of the CAMEL lies in its ability to identify financial institutions that will survive
and those that will fail. 

Using CAMELS rating the performance of The Premier Bank and One Bank given in below-

1-Capital adequacy:

Capital adequacy assesses an institution’s compliance with regulations on the minimum capital reserve
amount. 

Tier 1Capital+ Tier 2Capital

a) The Premier Bank = Risk Weighted Assets
= 2,190,8800000/313,316,218,385
=0.06992
=6.99%
- The Camel rating is 3

Tier 1Capital+ Tier 2Capital

b) One Bank = Risk Weighted Assets
= 2,3349600000/ 303,516,861,297
=0.0769
=7.69%
Here the camel is also 3
=
2- Asset quality:

This category assesses the quality of a bank’s assets

Non performingloan
a-The Premier Bank =
Totat Loan

= 13,204,682,073/ 393,074,854,947
=0.03359
=3.359%
 Non performingloan
b-One Bank =
Totat Loan
= 21,322,835,94/220,341,546,434

=0.0496
=4.96%