By the Bangladesh bank, definition of NBFI is “The institution (other than Deposit Money banks) which mainly carries out the financing business. In Bangladesh, NBFIs are constituted under the Financial Institutions Act, 1993. In Bangladesh, NBFISs they are not a member of clearing house and haven’t banking license. Generally, NBFIs provides a loan in the agriculture, commerce, building construction sectors. For the development of every economy, not only bank play roles but also NBFIs play many significant roles. It provides finance to venture capital. At present, investment companies, merchant bank, mutual associations/companies, leasing companies or building societies, etc., are the member of the NBFIs. We may explain CAMELS as “CAMELS ratings are the result of the Uniform Financial Institutions Rating System, the internal rating system used by regulators for assessing financial institutions on a uniform basis and identifying those institutions requiring special supervisory attention.”

The six key areas of CAMELS are: Adequacy and quality of bank's Capital, Assets (loans and investments), Management, Earnings, Liquidity and Sensitivity to market risk. It is mentioned here that the rating system had 5 (five) components when it was introduced in 1979. The five components were Capital adequacy, Asset quality, Management, Earnings, Liquidity. The sixth component sensitivity to market risk was added in 1996. The regulator that year also added an increased emphasis on an organization’s management of risk.