[Economic Term] Management status evaluation / Bank management status rating evaluation system

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Today's economic term is management status evaluation / bank management status rating evaluation system.

The management status evaluation system was first introduced in October 1996 as a comprehensive management evaluation system that can identify and take action on the risks of poor management of individual banks in a timely manner.
There are CAMEL-R, ROCA, and CACREL systems as evaluation methods. Bank headquarters and local corporations are evaluated by the CAMEL-R system, foreign bank branches and overseas branches of domestic banks are evaluated by the ROCA system, and special banks are evaluated by the CACREL system. The CAMEL-R method evaluates the management evaluation sector by evaluating capital adequacy (C), asset soundness (A), management adequacy (M), and profitability.
(E), liquidity (L), and risk management (R). The ROCA method includes risk management (R), management and internal control (O), legal compliance (C), and asset soundness (A). It is divided and evaluated into four categories. The management status evaluation of special banks is evaluated using the CACREL method, replacing the adequacy of management (M) and risk management (R) of general banks with legal compliance (C) and risk management (R).
The lower the evaluation grade, the more likely it is to be subject to timely corrective action such as management improvement recommendations, requests, or orders.

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