Bank Ratings in Emerging Asia - Methodology, Information and Technology (EAGLES vs CAMEL)

The CAMEL and EAGLES analysis are now written in greater detail.

Vong, J. (et al.) (2015). Bank Ratings in Emerging Asia - Methodology, Information and Technology in Emerging Technologies for Emerging Markets, Springer New York, pg 25 - 35.



Bank rating is as old as bank regulatory authorities. The most common approach to bank rating is on-site examination. The bank supervision authority conducts an audit of physical bank records and documents and other observations. In particular, the on-site examination looks at the bank’s assets, capital structure, management ability and professionalism of the bank practices. A summary rating is assigned based on this examination. This approach was reported in 1974 in a publication of the Federal Reserve Bank of New York. This rating system was called into question the first time during the Asian Financial Crisis of the 1997 that affected South Korea, Thailand, and Indonesia. IMF painfully restructured the South Korean economy. Thai-land suffered a severe outflow of funds and banks collapsed. The entire Indonesian banking system had to be revamped. Then the global financial crisis struck in 2007-2008, where the western world was hit harder that led to the collapse of very established banks such as Lehman Bros and Bear Sterns. This begs the question: why bank ratings did not, or cannot, forewarn imminent failures in the banking system. In 2009, it was reported that banks were usual-ly rated higher if they had greater capitalization, larger assets, and higher re-turn on assets and equity. In 2013, in a most scathing attack on bank ratings, it stated that most failing banks had enjoyed investment status ratings just be-fore they defaulted. This paper revisits the age-old CAMEL model and its derivatives, a more recent EAGLES framework that alerted the Asian Financial Crisis of the 1990s. Based on the experiences of two crises in the last two decades, what lessons did we learned, especially the early warning signals that can be found, contagion effect, information transparency and the availability of technology processes to collect and harness critical information.


Thank you for the great article.

Thanks to my father who told me on the topic of this blog, this weblog is
truly awesome.

Hello very nice blog!! Man .. Beautiful ..
Wonderful .. I'll bookmark your site and take the feeds additionally?
I am glad to seek out numerous helpful info here in the post, we
want develop extra strategies on this regard, thank you for sharing.

. . . . .

You can not discover your preferred, heirloom pearl rings and matching necklace anywhere. It has been some time because you wore those jewels remaining. Did you leave it for your baggage? Was it stolen? Did you misplace it somehow?

It is an honestly bad feeling while this takes place, regardless of who you're. This is because even if your earrings are insured, substitute hints are intricate and now and again you may in no way precisely update the piece of jewelry that has vanished.

But similar to every different very critical object you need to maintain tune of, including office work, financial institution statements, trinkets, seasonal décor and small portion s of garb (to name only a few examples) there needs to be a specific location so one can shop your earrings.

I visited several web sites but the audio quality for audio
songs current at this web site is really superb.

And (just as you placed your clothes in the impede while they're grimy and sooner or later, placed them again in the closet or dresser while they're smooth) a chosen storage area will offer you with the potential to realize exactly wherein your jewelry is on every occasion you aren't carrying it.

My family always say that I am wasting my time here at net,
but I know I am getting experience every day by reading such pleasant

Compare all this to today, when Asian ratings and bank systems are shaping the direction of the world's trade and transfers.