NCIF Model CDBI Framework
NCIF invests in CDBIs that display both strong financial and social performance. To determine if an institution meets these criteria, NCIF evaluates the institution using a Development Impact analysis as well as an internal CAMEL analysis. In addition, the institution must also provide a planned exit strategy.

Development Impact Analysis
NCIF asks critical questions about the institution’s impact in low to moderate income communities and populations.

Market Need
Is the bank operating in areas of high economic need? What is the median income, poverty rate and unemployment rate relative to the surrounding area? Does the institution cater to the surrounding community and other low- to moderate income communities?

Credit Products and Services
What products and services does the bank offer? Does the CDBI offer credit builder products? Does it provide mortgage products tailored to the needs of its customer segments? Is the CDBI an SBA Preferred Lender? Does it use Alternative Credit Scores to evaluate credit worthiness?

Non-Credit Financial Products and Services
What retail deposit, savings and checking products are offered? Does the CDBI offer credit cards, debit cards, stored value cards, Individual Development Accounts (IDAs) and other financial services needed by underbanked consumers?

Non-Financial Services
Does the institution offer financial training and literacy to individuals, community groups and businesses? Does it offer other services such as discounted tax preparation advice, workshops and counseling?

Partnerships
What partnerships is the institution involved with in the surrounding community? Are they actively working with external non-profits and various civic organizations? Do they operate their own non-profit subsidiaries to engage in these activities? Are they engaged in advocacy projects? Are they involved in regional and national trade groups?

NCIF Internal CAMELS Analysis
NCIF performs a thorough analysis that examines both historical performance and future projections for these institutional characteristics:

Capital Adequacy / Evaluation of the level of shareholder's equity relative to the assets, loans and earnings of the institution. Capital levels are also viewed in light of regulatory capital guidelines for both total assets and risk-weighted assets.

Asset Quality / Analysis of the credit risk inherent across the institution's various asset classes, including the level of non-performing assets and the diversification within and across asset types. This category also examines the monitoring and control mechanisms in place to manage credit risk.

Management / Assessment of managerial effectiveness and efficiency. The institution's performance on various indicators is compared to its peer group as one measure of management strength.

Earnings / Evaluation of both the aggregate earnings of the institution, relative to its size, as well as the level of "core earnings" or earnings which stem from normal/recurring business operations.

Liquidity / Assessment of the institution's asset and liability management, including the degree to which depositors can readily access funds and te relative volumes of loans and deposits.

Sensitivity / Introduced by regulators in 1996, this ratings category measures the institution's risk to market movements, including swings in interest rates, foreign exchange rates, commodity prices and equity prices.