Welcome to CAMEL Microfinance.
We'll take you on a journey of microfinance - as it happens, through a five-dimensional lens called CAMEL (Capital Adequacy, Asset Quality, Management, Earnings and Liquidity).
In addition to the news, we also bring to you knowledge-rich resources in terms of videos, downloadable documents, HOW-TO articles, etc related to CAMEL framework. Come and enjoy this ride on our CAMEL as we together watch the micro-finance industry from a CAMEL's eye-view!
View a list of all posts in this Category
View a list of all posts in this Category
View a list of all posts in this Category
We'll take you on a journey of microfinance - as it happens, through a five-dimensional lens called CAMEL (Capital Adequacy, Asset Quality, Management, Earnings and Liquidity).
In addition to the news, we also bring to you knowledge-rich resources in terms of videos, downloadable documents, HOW-TO articles, etc related to CAMEL framework. Come and enjoy this ride on our CAMEL as we together watch the micro-finance industry from a CAMEL's eye-view!
Capital Adequacy
"In order to be financially solvent, a Micro-finance institution need to have adequate capital to meet any potential losses. Measuring this financial solvency is the objective of Capital Adequacy aspect of CAMEL."
Latest analysis through our 'Capital Adequacy' lens
View a list of all posts in this CategoryAsset Quality
"Much like in any financial institution, loan portfolio is the most important asset for a Micro-finance institution. Measuring the quality and gauging the health of the asset is carried out using Asset Quality aspect of CAMEL"
Latest analysis through our 'Asset Quality' lens
View a list of all posts in this CategoryManagement
"The Smaller the function, the greater the management." - C. Northcote Parkinson.
Essentially, Management is about creating good governance, committed human resources, efficient processes with adequate controls and a supportive information technology.
Essentially, Management is about creating good governance, committed human resources, efficient processes with adequate controls and a supportive information technology.
Latest analysis through our 'Management' lens
View a list of all posts in this Category
Earnings
"Earnings are the net financial benefit for a microfinance institution. The higher the earnings (earned ethically), the higher are the chances of sustainability. The Earnings aspect of CAMEL measures MFI's ability to earn from its existing assets."
Latest analysis through our 'Earnings' lens
View a list of all posts in this Category
Liquidity
"The ability of an MFI to pay off its (short-term) liabilities as and when they fall due is measured by Liquidity ratios. It will not be an overstatement if one says that managing the cash flows between current assets and current liabilities can determine success or failure of a Micro Finance institution. The Liquidity aspect of CAMEL needs a more frequent monitoring."
Latest analysis through our 'Liquidity' lens
View a list of all posts in this Category
No comments yet. Be the first to comment!
Post a Comment