CAMELS, ROCA Discussion Brings Together Bankers, Regulators


Kaufman Rossin partnered with the Florida International Bankers Association (FIBA) to host a regulator panel discussion and educational networking event on August 28, 2014.  The event brought together more than 60 bank executives, compliance officers, advisors and regulators for a discussion about two key rating systems, CAMELS and ROCA, and other hot topics in the industry.

Two panelists from the Federal Reserve Bank of Atlanta presented an overview of the ROCA components:

  1. Risk management
  2. Operational controls
  3. Compliance
  4. Asset quality

And three panelists from the FDIC explained the CAMELS components:

  1. Capital adequacy
  2. Asset quality
  3. Management capability
  4. Earnings
  5. Liquidity
  6. Sensitivity to market risk

Both rating systems are used to assess financial institutions and help determine any potential corrective action that may be needed. The ratings are based on a scale of 1-5.  Each component is rated separately, but may be weighted differently.   Therefore, the final composite score is not a mathematical average.

The panel discussion concluded with a Q&A session in which regulators answered questions about cybersecurity for banks, Basel III, the Foreign Account Tax Act Compliance Act (FATCA) and other regulatory changes and trends.

This event was an opportunity for banking industry professionals to not only learn about key topics, but also to – as Oscar A. Enriquez of Banco de Bogota and co-chair of the FIBA YPC said – get to “know your regulator.”

To see photos from the event, view the Flickr album.

Jason Chorlins, CPA, CFE, CAMS, CITP, is a Risk Advisory Services Principal at Kaufman Rossin, one of the Top 100 CPA and advisory firms in the U.S.

Leave a Reply

Your email address will not be published. Required fields are marked *

We respect your personal information. Please review our Privacy Policy for more details.