Assessing the operations of EXIM Bank using the CAMELS rating system

Abstract

Assessing the Operations of EXIM Bank Using the CAMELS Rating System: This paper attempts to examine the performance of EXIM Bank and other contestants with the aid of the CAMELS rating system. The model is globally used as a measure of a bank's performance and of risks associated with it. It comprises Capital Adequacy, Asset Quality, Management Efficiency, Earnings, Liquidity and Sensitivity to Market Risk. Earnings reports, statutory reports and industry norms are used to analyze the Strengths and Weaknesses of EXIM Bank. The results show that EXIM Bank is capital adequate and this assures security and compliance with the rules. The bank is also exposed to the analysis of the NPL ratio, which allows the bank to ensure the correct management of the risks of credit even in the most adverse market situations with respect to the quality of assets. Management efficiency is taken into consideration when the subject is efficacy of operation and in the context of judicious actions adopted. Also, the revenue and profit generated in the previous periods have been reported and shown in the report, which shows the strong growth of these indicators. Their liquidity is evaluated as regarding their ability to manage cash flow on a short term basis and pay for their operations. Finally, in terms of improving the sensitivity of market risks, the analysis of exposure of the Bank to risk is demonstrated.