The CAEL Rating System is a standard used by the United States

Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation (FDIC) is one of two agencies that supply deposit insurance to depositors in American depository institutions, the other being the National Credit Union Administration, which regulates and insures cred ...

(FDIC) to evaluate the financial solvency of US banks. The rating is based on the bank's capital adequacy,

asset quality Asset quality is an evaluation of asset to measure the credit risk associated with it. Description Asset quality is related to the left-hand side of the bank balance sheet. Bank managers are concerned with the quality of their loans since that pro ...

, profitability, and liquidity, and is reported as a composite score. The composite score runs on a scale of 1 to 5, with 1 being excellent and 5 being indicative of imminent regulatory action. These numbers are useful to the banking public as a means to easily evaluate the health of their institution. There are multiple outlets from which to gather this information; however, there also exist many private rating firms whose ratings use the same name but are in no way affiliated with the FDIC. One such firm is

Bankrate Bankrate, LLC is a consumer financial services company based in New York City. Bankrate.com, perhaps its best-known brand, is a personal finance website. As of November 8, 2017, it became a subsidiary of Red Ventures through an acquisition. Hist ...

.FDIC: FIL-8-99: Financial Institution Letters: Special Alert
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References

{{Reflist Federal Deposit Insurance Corporation