24.6.1. Maple Consultants made the following observations on Marble Bank using the CAMEL system:

• Marble Bank maintains a capital-to-risk-weighted assets ratio (CRAR) of 15%, well above the regulatory minimum of 10%, indicating strong capital adequacy to support risks.
• A significant portion of Marble Bank’s loan portfolio is in long-term, fixed-rate mortgages, which have started to show an increase in delinquencies over the past year.
• The bank’s management team has recently been restructured, with several new appointments from within the banking sector, though their effectiveness in implementing strategy remains to be seen.
• Despite a challenging economic environment, Marble Bank has reported a consistent increase in net income over the past three years, demonstrating robust earnings capacity.
• Marble Bank’s liquidity coverage ratio (LCR) is below the required 100%, indicating potential challenges in meeting short-term obligations without additional funding.

Each option below combines two elements from the CAMEL system evaluation of Marble Bank. Based on the CAMEL system evaluation of Marble Bank, all of the following are accurate in reflecting the bank's financial condition, EXCEPT for: