SAN DIEGO - So which one is it? NCUA still uses CAMEL codes to rate credit unions, or it does not?
That’s what one credit union CEO wanted to know after hearing NCUA Vice Chairman Rodney Hood tell NAFCU’s Annual Convention that the agency had abolished CAMEL, only to be followed one day later by Region V Supervisory Examiner Linda Thompson telling the same meeting that some credit unions will likely see a reduction in their CAMEL rating this year.
“What we have abolished are the ratios that are behind the CAMEL scores,” clarified Thompson. “For instance, today your earning (E) may be in a decline but the examiner is to look at the whole picture: other risks, the outside environment, etc. It’s more of a holistic approach to rating your credit union than reliance on specific ratios.”(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
