22 •Majority of the funding is coming from customer’s deposits, and no concentration of funding sources. •Is there a maturity or interest rate mismatch? •Does the central bank impose reserve requirements? The profitability is estimated based upon the following key financial ratios, Table 2. 5 Liquidity Ratios Analysis Ratios FormulaCustomer deposits to total assets Total Customer DepositTotal AssetsTotal loan to customer deposits (LTD) Total LoanTotal Customer Deposit Rating of Liquidity Each of the components in the CAMEL rating system is scored from 1 to 5. In the context of liquidity, a rating of 1 represents strong liquidity levels and well-developed funds as the institution has access to sufficient sources of funds to meet present and anticipated liquidity needs. On the other hand, the rating of 5 signifies critical liquidity-deficiency, and the institution demands immediate external assistance to meet liquidity needs. (Uniform Financial Institutions Rating System 1997, p.9). 2.5 The significance of CAMEL rating framework in banking supervision Providing a general framework in evaluating overall performance of banks is of great importance due to the increasing integration of global financial markets. CAMEL model reflects excellently the conditions and performances of banks over years as well as enriches the on-site and off-site examination to bring better assessments towards banks’ conditions. Its purpose is to provide an accurate and consistent evaluation of a bank’s financial condition and operations in the areas such as capital, asset quality, management, earning ability and liquidity. Muhammad (2009) claims that the strength of these factors would determine the overall strength of the bank. The quality of each component further underlines the inner strength and how far it can take care of itself against the market risks.