12 C.F.R. § 327 app B to Subpart A of Part 327
1. Weighted Average CAMELS Rating
Weighted average CAMELS ratings between 1 and 3.5 are assigned a score between 25 and 100 according to the following equation:
S = 25 + [(20/3) * (C2 -1)],
where:
S = the weighted average CAMELS score; and
C = the weighted average CAMELS rating.
2. Other Scorecard Measures
For certain scorecard measures, a lower ratio implies lower risk and a higher ratio implies higher risk. These measures include:
Concentration measure; Credit quality measure; Market risk measure; Average short-term funding to average total assets ratio; and Potential losses to total domestic deposits ratio (loss severity measure).For those measures, a value between the minimum and maximum cutoff values is converted linearly to a score between 0 and 100, according to the following formula:
S = (V -Min) * 100/(Max -Min),
where S is score (rounded to three decimal points), V is the value of the measure, Min is the minimum cutoff value and Max is the maximum cutoff value.
For other scorecard measures, a lower value represents higher risk and a higher value represents lower risk. These measures include:
Leverage ratio; Core earnings to average quarter-end total assets ratio; Core deposits to total liabilities ratio; and Balance sheet liquidity ratio.For those measures, a value between the minimum and maximum cutoff values is converted linearly to a score between 0 and 100, according to the following formula:
S = (Max -V) * 100/(Max -Min),
where S is score (rounded to three decimal points), V is the value of the measure, Max is the maximum cutoff value and Min is the minimum cutoff value.
12 C.F.R. 327 app B to Subpart A of Part 327