NCUA Amends CAMEL Rating System
Yesterday, NCUA issued Letter to Credit Unions 07-CU-12 (if that link does not work, try this one) to notify federally-insured credit unions that it is modifying the CAMEL rating system. Effective December 31, 2007, NCUA examiners will no longer use the CAMEL Matrix. NCUA's letter indicates that they are making the change so that credit unions measure their performance based on risk-based internal goals and objectives - not against the outgoing CAMEL Matrix.  NCUA indicates that the change better flows with their Risk Focused Examination Program.