Cecil Bank of Elkton MD on the growing “Problem Bank” list
The FDIC’s official problem bank list is composed of banks with a CAMELS rating of 4 or 5. That list is not made public (just the number of banks and assets every quarter). Bank CAMELS (Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk) ratings are also not made public.
Because the FDIC info is not public various industry watchers compile an unofficial “Problem Bank” list using “publicly announced formal enforcement actions, and also media reports and company announcements that suggest to us an enforcement action is likely.”
