Explain further considerations that matter when analysing a bank

Some factors sit outside the CAMELS scores but matter to a bank's risk. Government support, either explicit guarantees or an implicit expectation of rescue for systemically important banks, lowers funding costs and default risk. The bank's mission, for example a cooperative or development bank, shapes its targets. Corporate culture affects risk appetite and control failures. The competitive environment and concentration of lending by sector or region affect resilience. Off-balance-sheet items such as guarantees, loan commitments and structured entities, segment disclosures, currency exposure and risk factor disclosures fill in what the ratios miss, as do Basel disclosures of capital and liquidity. The trap is assuming good ratios mean low risk when large commitments sit off balance sheet.