Slides based on Bank Management & Financial

Services by Peter Rose and Sylvia Hudgins, 7th ed.,

McGraw-Hill, Gup book, and adapted by Shinta
Wangke, 2010.

 What does CAMEL mean ?

Interpretation of Bank Financial Statements
through CAMEL

Supervisory rating of the bank's

overall condition based on
financial statements.

Capital Adequacy
Asset Quality
Management
Earning
Liquidity

Is a bank regulation, which sets a

framework on how banks and
depository institutions must handle
their capital.
Regulators try to ensure that banks
have sufficient capital to keep them
out of difficulty.

Capital Adequacy Ratio (CAR)

Modal (Capital)
ATMR

> 8%

x 100 %

The asset quality reflects the

quantity of existing and potential
risk associated with the loan and
investment portfolios.

Loan Classification Criteria:

Pass
Special Mention
Substandard
Doubtfull
Loss

Kualitas Aktiva Produktif (KAP)

< 3,35 %

Non Performing Loan (NPL)

<5%

Management in all business and human

organization activity is simply the act of
getting people together to accomplish
desired goals and objectives.

Overall Management
Risk Management
Bank Compliance

The amount of profit that a company

produces during a specific period.

Return on Assets (ROA)

Profit Before Tax
Total Assets

> 1,5 %

x 100 %

Return on Equity (ROE)

Profit AfterTax
Total Equity

x 100 %

> Banks Deposit Interest

Rate

Net Interest Margin (NIM)

Int Income Int Expense
x 100 %
Earning Assets

>7%

Beban Ops terhadap Pendapatan Ops

(BOPO)
Beban Ops
x 100 %
Pendapatan Ops

< 50 %

The ability to convert an asset to

cash quickly.

Loan to Deposit Ratio (LDR)

Total Loan
Total Deposit

x 100 %

85 % - 110
%