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  1. CFA Exam: June 2020 Level II
  2. Study Session 5. Financial Reporting and Analysis I
  3. Reading 16. Analysis of Financial Institutions

Learning Outcome Statements

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1. What makes financial institutions different?

a. describe how financial institutions differ from other companies;

b. describe key aspects of financial regulations of financial institutions;
2. The CAMELS approach

c. explain the CAMELS (capital adequacy, asset quality, management, earnings, liquidity, and sensitivity) approach to analyzing a bank, including key ratios and its limitations;

e. analyze a bank based on financial statements and other factors;
3. Other factors relevant to analysis of a bank

d. describe other factors to consider in analyzing a bank;
4. Analyzing an insurance company

f. describe key ratios and other factors to consider in analyzing an insurance company.