ALEXANDRIA, Va. — NCUA said it will begin rating corporate credit unions, as it does natural person credit unions, using the CAMEL code starting Jan. 1.
The CAMEL system will replace the current Corporate Risk Information System, or CRIS, which NCUA has used since 1999.
NCUA said use of the CAMEL code for corporates will achieve consistency and better understanding of its risk evaluations, by facilitating governance, as corporate directors' own credit unions are already evaluated under CAMEL; improving comparability because natural person credit unions and banks are evaluated with CAMEL; and reducing the complexities of managing two different rating systems. It will also create a uniform rating system throughout all CU charter types.
CAMEL is a rating that is based on capital adequacy, assets, management capability, earnings and liquidity. Ratings are given from one (best) to five (worst) in each category, as well as a composite of all five.
