The CAMELS rating is a supervisory rating system originally developed in the U.S. to classify a bank's overall condition. It is applied to every bank and credit union in the U.S. and is also implemented outside the U.S. by various banking supervisory regulators. The components of a bank's condition that are assessed: * (C)apital adequacy * (A)ssets * (M)anagement Capability * (E)arnings * (L)iquidity (also called asset liability management) * (S)ensitivity (sensitivity to market risk, especially interest rate risk) Ratings are from 1 (best) to 5 (worst) in each of the above categories.