Sean Vanatta

Summary: Sean H. Vanatta, a Senior Lecturer at the University of Glasgow and a Non-Resident Fellow at Princeton University, argues that the proposed revisions to the CAMELS rating system shift supervision from a proactive, forward-looking model to a reactive, backward-looking one. He contends that by prioritizing realized financial materiality over qualitative indicators like management quality and early-warning signals, the proposal reduces the regulatory capacity to intervene before financial deterioration becomes visible.