... evaluating banks’ operating cond itions.Among the statistical techniques analyzing and predicting bank failures,Discrim in ant Analysis (DA) was the leading technique for many ye ars (eg,Karels ... financialforecasts: A case of Taiwan comm ercial banks. Journal o f B anking andFinance, 28, 2353—2368.Karels, G V — P r akash, A J (1987) Multiva riate norm a lity and forecastingof business bankruptcy. ... Regulators use a rating system (the CAM E L S rating) to indicate the safety and soundnessof banks. CAME LS ratings include six parts: capital adequacy, asset qualit y,man agem ent expertise, earnings...