Figure 1
Relationship between Probability of Failure and Actual CAMELS Downgrades within Five Years of Failure-Probability Calculation
Year-end 1A1 Lowest Expected Rate of Failure 1A2 1A3 Highest Expected Rate of Failure
1985 14.00 23.36 51.01
1986 13.95 22.04 49.59
1987 12.23 21.50 47.51
1988 9.57 18.23 43.09
1989 9.22 14.34 39.39
1990 7.53 9.53 30.05
1991 4.79 6.78 16.33
1992 3.49 4.63 9.95
1993 4.53 5.20 9.77
1994 4.63 5.94 10.61
1995 4.98 6.91 13.99
1996 6.34 8.68 15.06
1997 7.19 9.29 17.52