The original CAMEL was developed in 1978 by the U.S. Federal Reserve to evaluate the solvency of U.S. banks. In 1993, ACCION adapted the CAMEL to microfinance. It is a diagnostic and management tool for microfinance institutions (MFIs) that measures:
Capital adequacy
Asset quality
Management
Earnings
Liquidity
Used around the world by both non-regulated and regulated MFIs, the ACCION CAMEL™ has long been a microfinance industry standard. Central bankers in Honduras, Bolivia, India, and across Africa have received training in the use of ACCION CAMEL™.
The ACCION CAMEL™ Approach
The ACCION CAMEL™ philosophy is that the more the institution contributes to the rating process, the more it gains. The depth and quality of the ACCION CAMEL™ analysis fundamentally depends on the availability of financial performance information. ACCION CAMEL™ encourages institutional transparency, evolution and transformation through a tried and true methodology.
ACCION CAMEL™ Training
Since 1999, ACCION CAMEL™ staff has provided training in the ACCION CAMEL™ tool for third parties. Various supervisors and second tier development banks have received training in the use and application of the ACCION CAMEL™ as part of the supervisory or credit analysis. Participants learn:
- The theoretical framework of the ACCION CAMEL™ as trainers walk through the concepts behind each of the 20 indicators that form part of the CAMEL instrument, as well as the six financial adjustments used to standardize the financial statements of an institution under evaluation
- The use of the ACCION CAMEL™ spreadsheet model to perform the CAMEL™ adjustments and calculate the financial ratios
- How to put the theory into practice by conducting the entire ACCION CAMEL™ process, which includes gathering data, performing financial adjustments, interviewing key staff, analyzing data and determining the final rating
For more information:
Lynne Curran, Senior Director
ACCION International
lcurran@accion.org
Direct: (617) 625-7080 x1075
Main: (617) 625-7080
Fax: (617) 625-7020