CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

The management capabilities in the CAMELS framework refer to bank management's ability to:

I. identify and exploit profit opportunities
II. manage risk
III. comply with laws and regulations
Correct Answer: I, II and III

It refers to the bank management's ability to identify and exploit appropriate profit opportunities and simultaneously manage associated risks. It covers management's ability to ensure the safe operation of the institution as they comply with the necessary and applicable internal and external regulations.

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