OVERVIEW OF THE CAAMPL EARLY WARNING SYSTEM IN ROMANIAN BANKING

The uniform bank rating system is a specific instrument for the supervising activity and has its origins in the USA; it has later been borrowed by German, Italian, Great Britain authorities, which use influential components in their banking system; later on, their system was adopted by most central banks within the European Union. In Romania, the uniform bank rating system has been implemented by NBR (the National Bank of Romania) since 2000; the specific components are: the capital adequacy (C), the quality of assets (A), the quality of the stock holding (A), the management (M), profitability (P), liquidities (L) and sensitivity (S) starting from the year 2005. For short, this system is called CAAMPL. The evaluation of these specific elements represents an important criterion for establishing a compound rating, which means assigning scores to each bank. The compound rating for the banking system is established based on economic – financial indicators and prudence indicators.