Measuring Financial Performance Based on CAMEL: A Study on Selected Islamic Banks in Bangladesh

Ahsan, Mohammad Kamrul

doi:10.18034/abr.v6i1.803

Cited by 20 publications

(21 citation statements)

References 5 publications

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“…On the other hand, the Liquidity position of these banks was found to be significantly related to the performance of selected banks at 5% significance level. Liquidity ratios measure the ability of the bank to pay off its current commitments (Ahsan, 2016). Liquidity is very critical for banks and the confidence of its customers mainly rests upon the banks' ability to meet its immediate commitments.…”

Section: Resultsmentioning

confidence: 99%

“…The cash ratio showed insignificant correlation, whereas the regression result showed that the cash ratio was statistically significant with a bank's performance. Ahsan (2016) analyzed the financial performance of three selected Islamic Banks in Bangladesh for a period of eight years 2007-2014, using CAMEL model. Results indicate that all the selected banks were in strong position on their composite rating system.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This outcome means that a one unit increase in liquidity ratio as measured by total customer deposits to total assets will increase earnings per share by 1.19 units. Liquidity ratio in a bank measures the ability of the bank to pay off its current commitments (Ahsan, 2016). Liquidity is very critical for banks and the confidence of its customers mainly rests upon the banks' ability to meet its immediate commitments.…”

Section: Correlation Analysismentioning

confidence: 99%

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Performance Evaluation Of Listed Commercial Banks In Botswana: The Camel Model

Sathyamoorthi

Mapharing²,

Ndzinge³

et al. 2017

ABR

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The study evaluated the financial performance of three listed commercial banks in Botswana for the period 2011-2015 applying the CAMEL model. The study used the secondary data sourced from the annual reports of the listed banks. Results indicate that selected banks were highly leveraged and that their liquidity position was sound. The correlation analysis revealed that Earning per share had a significant positive correlation with liquidity ratio of total customer deposits to total assets and that leverage ratio was significantly negatively correlated to the ratio of equity capital to assets. Other CAMEL ratios were not significantly correlated to Earnings Per Share. The regression analysis showed that Capital adequacy, Asset quality, Earning ability and Managerial efficiency had no significant relationship with selected banks' performance measured in terms of Earnings per share. On the other hand, the Liquidity position of these banks was found to be significantly related to the performance of selected banks at 5% significance level. The findings also indicated that, overall, the selected banks performed well during the study period in terms of most of the parameters of CAMEL model with adequate capital and assets when compared to benchmarks. The earning capacity of the selected banks was also on the increase. The findings of this study will be helpful to the management of selected banks in making appropriate managerial decisions.

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Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Correlation Analysismentioning

confidence: 99%

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Performance Evaluation Of Listed Commercial Banks In Botswana: The Camel Model

Sathyamoorthi

Mapharing²,

Ndzinge³

et al. 2017

ABR

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“…CAMEL is an acronym for five factors of bank safety and health, namely capital adequacy, asset quality, management quality, productive ability, and liquidity [24]. The five factors that are used as indicators of this bank's health can be interpreted as follows [25][26][27][28][29][30]:…”

Section: Literature Reviewmentioning

confidence: 99%

Designing Application for Determining the Health Level of Village Credit Institutions with the CAMEL Method

Karma¹,

Sukasih²

2019

Proceedings of the International Conference on Applied Science and Technology 2019 - Social Sciences Track (iCASTSS 2019)

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This study aims to design and build an information system that is able to determine the health level of the Village Credit Institution (LPD) which has an important role in supporting the economy of a village community. As a financial institution owned by a traditional village in Bali, LPD management is regulated based on Bali's Level I Regional Regulations. The main activity of the LPD is to collect funds from the community in the form of savings or deposits, and redistribute it to the community in the form of credit. A portion of the profits obtained will be handed over to the traditional village to finance village development. In the midst of intense competition between existing financial institutions and news of several LPD cases that have problems, monitoring the LPD's health level becomes something important and mandatory. The resulting information system is expected to assist and facilitate the Supervisory Agency in conducting an assessment of the health level of LPDs. The method used to assess the health level of LPD in this system is the CAMEL method which has 5 (five) aspects, namely capital, assets, management, earnings, and liquidity.

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“…CAMELS oranlarını kullanarak Türkiye'de ve farklı ülkelerde bankaların finansal performansını belirleme amacını taşıyan çok sayıda çalışma bulunmaktadır. Çalışmalar kullanılan yöntem, ele alınan değişkenler, incelenen dönem ya da incelenen banka gruplarına göre farklılık göstermektedir (Ahmedov & Mehmedov, 2017;Ahsan, 2016;Anwar, 2016;Aparicio, Duran, Lozano-Vivas, & Pastor, 2018;Aspal, P.K. & Dhawan, 2014;Avkiran, 2011;Chatzi, Diakomihalis, & Chytis, 2015;Cole & Gunther, 1998;Da Silva, Leite, Guse, & Gollo, 2017;Desta, 2016;Ecer, 2013;Ferrouhi, 2014;Gupta, 2014;Khan, 2018;Liu & Pariyaprasert, 2011;Mohiuddin, 2014; Ozkan-Gunay Alphanumeric Journal Volume 7, Issue 2, 2019 & Ozkan, 2007; Roman & Şargu, 2013;Sonaje & Nerlekar, 2017;Wanke, Azad, & Barros, 2016).…”

Section: Literatürunclassified

CAMELS Oranları İle Mevduat Bankalarının Finansal Performansı: Bileşik Endeks Yaklaşımı

Keten

Çağlar

2019

Alphanumeric Journal

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CAMELS rating system are used means of remote surveillance. This indicator including six sub-indicators namely, capital adequacy, asset quality, management quality, earning, liquidity, sensitivity to market. The aim of this study is to evaluate bank performances by using CAMELS ratios. In this study, firstly, an index was constructed for each component with DEAlike model and later was created CAMELS composite index. At first, index value was obtained of each bank and sorted. Then by, the arithmetic means of the index values found for each component was taken as the ultimate composite index value and was made a general ranking. As a result, composite index was created. Result of analysis in capital adequacy, Arap Turk Bank, Citibank and Turkish Bank was ranked among the top three. In the asset quality, Turkey Vakıfbank, Fibabank and Turkish Bank while these banks in the first place, for management quality, T.C. Ziraat Bank, Akbank and Turkey Halk Bank the highest index is the most valuable banks. In the earning, T.C. Ziraat Bank, Citibank and Akbank found the banks with the best efficiency. In the liquidity, Arap Turk Bank, Turkey Garanti Bank and Citibank are ranked among the top three. As the last component, in the sensitivity to market, Turkish Bank, Alternatifbank and Arap Türk Bank. To make a general assessment, that in according to composite index which created from CAMELS rates, Citibank, Arap Turk Bank and Turkish Bank are in the top places, but Sekerbank, Turkland Bank and Finansbank are in the last places.

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Measuring Financial Performance Based on CAMEL: A Study on Selected Islamic Banks in Bangladesh

Cited by 20 publications

References 5 publications

Performance Evaluation Of Listed Commercial Banks In Botswana: The Camel Model

Performance Evaluation Of Listed Commercial Banks In Botswana: The Camel Model

Designing Application for Determining the Health Level of Village Credit Institutions with the CAMEL Method

CAMELS Oranları İle Mevduat Bankalarının Finansal Performansı: Bileşik Endeks Yaklaşımı

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