Application of CAMEL model on the GCC Islamic Banks: 2008-2014

Kumar, Vijay; Sayani, Hameedah

doi:10.15640/jibf.v3n2a1

Cited by 10 publications

(13 citation statements)

References 20 publications

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“…CAMELS can be used to rank Islamic banks' performance, as evidenced by several publications on this issue (Kumar & Sayani, 2015;Ledhem & Mekidiche, 2020;Sarker, 2005). CAMELS was applied even to compare conventional and Islamic banks (Rozzani & Rahman, 2013;Kouser et al, 2011).…”

Section: Literature Review and Analysismentioning

confidence: 99%

Ranking methodology for Islamic banking sectors – modification of the conventional CAMELS method

Varga

Bánkuti

2021

Banks and Bank Systems

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The state of banking systems is an important issue. The purpose of this paper was to test whether the well-known CAMELS microeconomic methodology, generally used for ranking banks, is applicable to evaluating Islamic banking systems. The hypothesis was tested by implementing a method for a particular case, public, free data – from 2013 till the first quarter of 2018 – on Islamic banking systems from the “Islamic Financial Services Board” (IFBS) database. As expected, modifications were necessary. First, because of the lack of data (in Islamic databases, no data refer to the management (“M”)), and second, to avoid the subjectivity of the five-degree method and to reach more sensibility. Thus, a hundred-level (standardized) rating system was introduced – “CAELS 100”, where “100” refers to the levels. The other part of the methodology – creating a simple average of the (now level 100) rating of raw indicators to get the letters of CA(M)ELS in the relevant period – remained unchanged. After the data cleaning, only six countries (Bahrain, Egypt, Kuwait, Oman, Turkey, and the United Arab Emirates) were able to participate in the analysis.The result showed that Egypt, Turkey and Kuwait were the best ones respectively. Thus, it was concluded that this “CAELS 100” methodology is suitable for evaluating Islamic banking systems. AcknowledgmentThe research was supported by the project “Intelligent specialization program at Kaposvár University”, No. EFOP-3.6.1-16-2016-00007.

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Section: Literature Review and Analysismentioning

confidence: 99%

Ranking methodology for Islamic banking sectors – modification of the conventional CAMELS method

Varga

Bánkuti

2021

Banks and Bank Systems

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“…A) These are the summaries on the study on evaluations of financial performances of banks with CAMELS components. Guan, et al (2019) China, Khatri (2019) and Sangmi et al (2010) India, Rahman et al (2018) and Ahsan (2016) Bangladesh, Munir et al (2017) Indonesia and Malaysia, Rozzani et al (2013) Malaysia, Mousa (2016 Jordan, Komorowski et al (2016) Bosnia and Herzegovina, Rostami (2015) Iran, Ibrahim (2015) United Arab Emirates, Kumar et al (2015) United Arab Emirates, Qatar, Bahrain, Kuwait, Jaffar et al (2011) Pakistan, Karaca et al (2018), Şendurur et al (2018), Karaçor, et al (2017), Ege, et al (2015, Karapınar et al (2015) and Gümüş et al (2015) these studies have been done over Turkish banks.…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of Financial Performance of Foreign Banks Having Branches in Turkey by TOPSIS and ELECTRE Methods

Bozdoğan

Odabaş

Shegiwal

2021

Alanya Akademik Bakış

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Effective performance evaluation is an important indicator of the success of every business particularly the banking sector. Banks are one of the most fundamental elements of the financial system. The financial structures of banks should be measured and evaluated accurately, the results should be analyzed salubriously and presented to the relevant users. The performance of each bank is evaluated by financial criteria which are ranked according to their financial performance. This is important both for the bank and the decision makers in the banking sector in which it operates. The aim of this study is to evaluate the financial performance of foreign banks having branches in Turkey. In the study, in Turkey four foreign banks having branches and Ziraat Bank with the largest assets were analyzed. The data were obtained from the annual reports of banks between 2014 and 2018. CAMELS criteria were used as financial performance indicators in the study. TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) and ELECTRE (Elimination and Choice Translating Reality) which are multi-criteria decision-making methods were used to evaluate the financial performance of these banks. As a result of the application of these

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“…Liquidity helps a bank to reduce the chance of bank's failure to pay its depositors in regular transactions (Kumer and Sayani, 2015). Alshatti (2015) stated that it is essential to assure proper liquidity management for increasing the profitability of the banks.…”

Section: Literature Reviewsmentioning

confidence: 99%

Effect of Liquidity and Bank Size on the Profitability of Commercial Banks in Bangladesh

Parvin

Chowdhury²,

Siddiqua

et al. 2019

Asian bus. rev.

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Nowadays Modern economy cannot be thought without banks. The banks of Bangladesh have great contributions to the development of this country. This study concentrated on the commercial banks in Bangladesh to determine the effect of liquidity and bank size on the profitability of the banks during the year 2011-2015. Seven commercial banks were selected and descriptive as well as correlations analysis statistics were used to conduct the study. Data from the annual reports of the banks were analyzed. The results stated that loan to asset ratio and bank size had a positive relation with return on asset (ROA) which was the indicator of profitability. The results also showed that deposit to asset ratio had a negative impact on the ROA of the selected banks. Although there were relationships among liquidity, bank size and profitability but liquidity and bank size did not have a significant influence on the profitability of the banks.

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Application of CAMEL model on the GCC Islamic Banks: 2008-2014

Cited by 10 publications

References 20 publications

Ranking methodology for Islamic banking sectors – modification of the conventional CAMELS method

Ranking methodology for Islamic banking sectors – modification of the conventional CAMELS method

Analysis of Financial Performance of Foreign Banks Having Branches in Turkey by TOPSIS and ELECTRE Methods

Effect of Liquidity and Bank Size on the Profitability of Commercial Banks in Bangladesh

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