The Uniform Financial Institutions Rating System (UFIRS) commonly known as the CAMELS rating system,
was adopted by the Federal Financial Institutions Examination Council (FFIEC) on November 13, 1979.
The FFIEC updated the UFIRS in December 1996 and the revision was effective January 1, 1997. These revisions
include the addition of a 6th component addressing sensitivity to market risks - identification of risks
within the component and composite rating descriptions. It can be said that the UFIRS helps maintain stability
and our confidence int the nation's financial system.
UFIRS assignes a composite rating based on an evaluation and rating of 6 essential components of an institution's
financial condition and operations.
With UFIRS there are two types of ratings:
1. Composite ratings:
stands for C
apital adequacy, A
sset quality, M
anagement capability, E
arnings quantity and quality, the adequacy of L
However, it was later updated with the sixth key component and that is S
ensitivity to market risk - so since then it is CAMELS