BADM 402 - Bank Safety and Soundness

The annual Safety and Soundness examination is the most comprehensive regulatory examination to which every federally insured financial institution is subject. Examiners intensely review six subjects with the acronym CAMELS - Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market Earnings, Liquidity and Sensitivity to market is also assigned - and the operational flexibility of the bank and perhaps the longevity of bank senior management are on the line. This course explores each of the six categories in considerable depth, making clear why they are of such critical importance and how the bank examiners perform their assessments. It also demonstrates the potential tradeoffs that bank management must wrestle with between CAMELS categories’ grades. 3 credits