CAMEL Analysis Research Articles

Examining The Capability Of People's Credit Bank In Langkat District In Overcoming Financial Problems Of Village Communities

This research aims to examine the ability of Rural Banks in Langkat Regency to overcome the financial problems of village communities. One of the very important needs of modern society today is a healthy and reliable financial system. The financial system even has a very basic role for society. Rural Bank is one of the institutions that uses a financial system and can provide financial information in the form of financial reports which can provide information to internal and external parties regarding the company regarding the financial situation and conditions within the company. The subjects in this research were the leadership, accounting department and operations department at the People's Credit Bank in Langkat Regency. The type of research is quantitative research with the data used are financial reports. Data collection techniques are interviews and documentation. Data analysis is CAMEL analysis which is used to assess the level of bank financial health based on capital, quality of productive assets (KAP), management, profitability and liquidity. The research results show that the level of bank financial health in terms of the capital aspect (CAR) in 2016, 2017, 2018 is within healthy criteria. The ratio of classified productive assets to productive assets in 2016, 2017, 2018 shows that the bank is in healthy criteria, while PPAPYD (Provision for Losses of Productive Assets Established) in 2016 is included in unhealthy criteria, whereas in 2017, 2018 the bank is in healthy criteria . The evaluation of management aspects in general management and risk management in 2016, 2017, 2018 shows criteria that are unhealthy and quite healthy. The profitability aspect, namely ROA in 2016, 2017, 2018 shows that the bank is in the healthy category, while BOPO in 2016, 2017, 2018 is included in the healthy criteria. The liquidity aspect, namely the LDR in 2016, 2017, 2018 is included in the healthy criteria, while the cash ratio in 2016, 2017, 2018 is included in the healthy criteria. Growth in the level of bank financial health at PT. BPR Langkat 2016, 2017, 2018 shows that the bank's financial health level is included in the healthy criteria.

A CAMEL Analysis of Financial Performance of State Bank of India and HDFC Bank in India: Pre- and Post-use of Artificial Intelligence Applications

A CAMEL Analysis of Financial Performance of State Bank of India and HDFC Bank in India: Pre- and Post-use of Artificial Intelligence Applications

Financial Performance Evaluation of Small Finance Banks: A CAMEL Analysis

Small finance banks (SFBs) are a special category of banks incepted by the Reserve Bank of India in 2015 to cater to the financial needs of the underserved population of the country with the aim of financial inclusion. They serve the priority sector and the unorganised sector of the country. This article analyses and evaluates the performance of these banks on the basis of various financial parameters such as capital adequacy, asset management, management quality, earning quality and liquidity derived from the CAMEL framework. Following a robust evaluation methodology, namely data envelopment analysis (DEA), a sample of all the SFBs operating in India to date is taken. As per the composite rating of CAMEL, results show that the majority of SFBs exhibit satisfactory performance. Utkarsh SFB Limited is ranked at the first position and is followed by Fincare SFB Limited on the second position. Jana SFB Limited stands at the last position amongst all the banks, preceded by ESAF SFB Limited. The results of DEA show average inefficiency among SFBs. The calculated efficiency scores of SFBs highlight that Capital SFB, Fincare SFB, Jana SFB, Shivalik SFB and Utkarsh SFB are the most efficient banks, with a technical efficiency score of 1. ESAF SFB has the lowest efficiency score. Scale inefficiency is the major reason for inefficiency. The study provides valuable insights to the authorities, managers and investors about the performance of these banks and gives them a future vision of the sustenance of these banks.

The Capital Adequacy, Asset Quality, Management Quality, Earning Quality, and Liquidity Analysis in Indonesia Banking Sectors

Risks likely to arise and hinder profitability can be measured using the CAMELanalysis conducted in this study. CAMEL and profitability are fundamentalaspects that are highlighted to determine the financial performance of banksectors. It can be said that if the profitability value of a business is good, itreflects good financial performance. Increased profitability is the success ofmanagement in managing the risks detected. The specific purpose of this studyis to measure each proxy that represents CAMEL analysis on the profitabilityvalue conveyed by the average return on equity (ROAA) variable in the bankingsector so that bank management can manage risk well and generate highprofits. This research was conducted using quantitative methods and secondarydata in the form of databases, namely company financial report documents andcompany annual reports downloaded through the official website of theIndonesia Stock Exchange and processed using Eviews software. Conventionalbanks listed on the Indonesia Stock Exchange for the period 2020-2022, asmany as 41 banks became the sample of this study. The results showed thatCAR, NPL, BS, and LDR had a significant effect on banking profitability, whileNIM had no significant effect on banking profitability

Political Stability and Performance of Financial Institutions in Pakistan

The purpose of the present study is to analyze the impact of political stability on the performance of financial Institutions in Pakistan. This is the first study in the context of Pakistan that analyzes the performance of financial institutions during the period of political stability. The study's sample period was from 2008 to 2017 because, for the first time in Pakistan, two pure political governments completed their electoral term since the country's independence in 1947. The data is collected from the balance sheet analysis provided by the State Bank of Pakistan on its official website. For the data analysis, the study used the CAMEL analysis technique. The CAMEL analysis technique was also used by the IMF in 2020 to analyze the performance of underdeveloped and developing countries of the world. The results show that the performance of locally owned financial institutions (MCB Bank, United Bank Limited, and Allied Bank) in Pakistan increased during this period. Still, foreign-owned bank's performance is not good even if they cannot fulfill the minimum requirement established by the State Bank of Pakistan. The results contribute to the efficiency theory of financial institutions. Further, the study suggests that the researchers can test the significance of the results by changing sectors to confirm, modify, accept, or reject the results.

Evaluating the impact of self-service cash deposit machines on the performance of commercial banks in Tanzania

This study aims to evaluate the impact of utilization of self-service cash deposit machines (SSCDMs) on the financial performance of Tanzanian commercial banks, focusing on key parameters like capital adequacy, asset quality, management quality, earning ability, and liquidity. The research, conducted over six years (2017–2022), utilizes a CAMEL analysis and combines secondary data review with primary data collected through interviews. Four commercial banks' audited financial statements serve as the primary data source. The findings indicate a mixed impact of SSCDM utilization on bank performance, with some banks experiencing positive effects on capital adequacy and liquidity ratios, while others show performance fluctuations. Overall, SSCDMs are found to enhance operational efficiency and convenience, attracting more customers and increasing deposit volumes. However, potential liquidity management challenges are noted. This study contributes valuable insights to the evolving Tanzanian banking sector, aiding policymakers and bank management in informed decision-making regarding self-service banking technologies.Graphical abstract

Financial Performance Level Analysis Model Bank Victoria Sharia Through The CAMEL, RGEC, And Z-Score Methods

ABSTRACTBackground. The COVID-19 pandemic peak from 2020 to 2021 has significantly impacted the global economy, including Islamic banks. Consequently, this event has sparked interest in researching the health of small-category banks in facing challenges and significant changes, such as PT Bank Victoria Syariah during that period.Purpose .This study aims to examine the concrete impact and handling of these changes through an analysis of the Financial Performance Level focusing on Bank Victoria Syariah during the period from 2019 to 2021.Method. The method used to obtain accurate results is quantitative research with secondary data. The methods employed include CAMEL, RGEC, and Z-score analyses.Results. The research findings indicate that during the COVID-19 pandemic, the financial performance of Bank Victoria Syariah was relatively poor. There is a need to evaluate the bank's management. This is evident from the low profitability component (ROA) generated based on CAMEL analysis. This situation is caused by the very high BOPO ratio based on RGEC, reflecting operational inefficiency and the accumulation of non-performing Finance (NPF). The impact is also evident in the low ROE, even turning negative, posing a risk to the management of Bank Victoria Syariah's financial assets. Z-score analysis indicates that the company is in serious financial difficulty. Consequently, the bank finds it challenging to maximize its efforts and faces difficulties in gaining customer trust, with the possibility of large-scale withdrawal of deposits due to a Reputation crisis.Conclusion. As a result, the management of Bank Victoria Syariah is responsive to communicating necessary changes and concrete steps, improving operational efficiency and effectiveness, collaborate, involve employees in the recovery process, and establish cooperation with regulatory authorities.

A Study On Financial Performance Analysis With Reference To Real Touch Finance Limited And Selected NBFCs In India Using Camel Model

The emergence of Non-Banking Financial Companies (NBFCs) in India is a response to the substantial unbanked population, making them vital players in the financial market. Institutions like Real Touch Finance Limited (RTFL), Dharani Finance Ltd, and Shriram Finance Ltd have experienced rapid growth due to the rising demand for funds in areas like education, housing, marriage, vehicles, and leisure. A comprehensive CAMEL analysis from 2018 to 2022 assessed their financial performance. RTFL displayed positive trends in management efficiency, earnings, and asset quality. Dharani Finance Ltd faced volatility in returns and profitability challenges, while Shriram Finance Ltd had positive capital adequacy but struggled with liquidity and ROA. RTFL outshone with improved margins and non-interest income. In conclusion, RTFL appears relatively stronger, highlighting the importance of ROCE and ROA for shareholder wealth. This study provides valuable insights into improvement areas, growth prospects, and risks, emphasizing capital utilization, cost management, profitability, and efficient liquidity management for long-term success.

CAMEL Analysis of Commercial Banks in Nepal

This research paper seeks to perform a thorough assessment of the financial stability and efficacy of commercial banks in Nepal, utilizing the CAMELS analysis framework. The CAMEL framework, incorporating Capital adequacy, Asset quality, Management quality, Earnings capability, and Liquidity position, acts as a structured method for assessing the comprehensive health and resilience of financial institutions. By employing this framework to the commercial banks in Nepal, this study offers crucial insights into the merits and demerits of the country's banking sector. In this investigation, a quantitative, descriptive, and analytical research design is employed to execute the CAMEL analysis of commercial banks in Nepal. The study relies on secondary data, sourced from published financial reports, annual statements, and regulatory submissions of commercial banks in Nepal. A purposive sampling technique is utilized to choose a representative sample of commercial banks in Nepal. CAMEL analysis of commercial banks in Nepal yielded a favorable evaluation of financial stability. The majority of banks showcased commendable performance in various components of the framework, reflecting a predominantly robust and stable banking sector. Nonetheless, certain areas, particularly for smaller banks, necessitate vigilant observation and specific regulatory actions. The outcomes of this study can aid policymakers, regulators, and industry professionals in making enlightened decisions, addressing potential risks, and enhancing the overall financial robustness of the banking sector in Nepal.

Financial Performance of ICICI Bank – A Study

Abstract The first bank or financial institution from Asia that is not Japan to be listed on the NYSE is ICICI, an Indian corporation. The nature of this investigation is analytical. This study's primary goal is to use camel analysis to examine ICICI Bank's financial performance. The nature of this investigation is analytical. Secondary Annual reports, books, journals, and magazines are used to gather data. Ratio analysis has been used to analyse the data that was obtained. The study's findings indicate that ICICI Bank was on the rise and that the liquidity metric held the top spot.

A Camel Analysis on the Performance of South Indian Bank

A Camel Analysis on the Performance of South Indian Bank

Analysis and Evaluation: Performance of Bank Through CAMEL Model, A Case Study of Selected Public and Private Banks in India

Performance evaluation of the banking sector is a powerful measure and indicator to test the stability of financial activities of an economy. In this study an attempt has been made to assess the performance & financial stability of selected Private and Public Banks in India of the year 2018. CAMEL techniques have been used to look at the financial strength of the chosen banks. Composite Rankings and Average has been implemented here to attain conclusion through the comparative and significant analysis of various parameters of CAMEL. HDFC bank is ranked first under the CAMEL analysis followed by Axis bank. ICICI occupied the third position. The fourth position is occupied by SBI, fifth by Bank of Baroda and the last position is occupied by Bank of India amongst all the selected banks.

Analysis Financial Performance Using the Camel Method at PT. Bank Sulselbar Period 2015-2021

This study aims to determine the financial performance of PT. Bank Sulselbar from 2015 to 2021 using the CAMEL method, to see if PT. Bank Sulselbar is in a healthy or unhealthy predicate. This type of research is a quantitative descriptive research. The sample used in this study is the financial statements of PT. Bank Sulselbar for the 2015-2021 period. Data collection used documentation techniques. The data analysis used is the CAMEL analysis set by Bank Indonesia. The results of this study indicate that the health level of PT. Bank Sulselbar for the 2015 to 2021 period is in the healthy predicate. This can be seen from the results of research on the CAMEL aspect for the last 7 years 2015-2021 consecutively for 2015 it was 71.62, in 2016 it was 77.28, in 2017 it was 70.66, in 2018 it was 70.90, in 2018 it was 70.90. In 2019 it was 69.70, in 2020 it was 69.53, and in 2021 it was 69.87. Based on the provisions of Bank Indonesia regarding the criteria for assessing the soundness of a bank, PT. Bank Sulselbar is in the interval 66-<81 with the Healthy Enough predicate for 2015-2021.

Analisis CAMEL untuk Menilai Tingkat Kesehatan Laporan Keuangan Pada PT Bank MNC Internasional Tbk

In the 4.0 era, the financial industry is one of the important roles to advance a country's economy and is needed in financial transaction activities in all sectors. The main function of banking is to effectively increase the added value of the economy. The effectiveness of a bank can be seen in the assessment of the level of bank health which can be viewed from several indicators, one of which is through an assessment in the financial statements of the bank concerned using the CAMEL method. The purpose of this study is to determine the level of health in the financial statements of PT Bank MNC Internasional Tbk in the 2018-2021 period using the CAMEL method which includes factors from Capital, Asset, Management, Earning and Liquidity. The design of this study used descriptive analysis using a content or document analysis. The results of the analysis showed that PT Bank MNC Internasional Tbk showed its achievements in the ratio of CAR, BOPO and LDR. However, based on the results of the bank's health level analysis using the CAMEL analysis for the 2018-2021 period, it was generally declared unhealthy.

STATE-OWNED BANK AND NATIONAL PRIVATE FOREIGN EXCHANGE COMMERCIAL BANK FINANCIAL PERFORMANCE: BEFORE AND DURING THE COVID-19 PANDEMIC ERA

The banking sector has a fairly important role related to its function which is a sub-system in the economy of a country. In the modern era, the banking sector is used in various activities including the provision of goods and services, consumption, and investment made by the community. This study aims to determine the performance of commercial banks before and during the COVID-19 pandemic. The data used in this study is cross-section data from 28 state-owned banks and National Private Foreign Exchange Commercial Bank in 2019 and 2020. The data were analyzed using the CAMEL analysis method. The result of the analysis showed there is no significant difference in performance between state-owned banks and National Private Foreign Exchange Commercial Bank before and during the covid-19 pandemic.

CAMEL Ratio on Profitability Banking performance: Case Studies of Banks in Indonesia

A The purpose of the study was to determine whether there was an effect of the CAMEL variable (CAR, AEPA, NIM, BOPO, and LDR) on the profitability variable (ROA), in banking companies in Indonesia for the 2014-2018 period. The population and sample in this study are banking companies in Indonesia. The data collection technique is sample data from the Indonesia Stock Exchange. In this study data analysis using SPSS version 23. The indicators used in the CAMEL analysis are CAR (Capital Adequacy Ratio), AEPA (Allowance for Earning Assets), NIM (Net Interest Margin), ROA (Return on Assets), LDR (Loan to Deposit Ratio). Based on the results of the study, CAR does not affect profitability (ROA), while the variables: AEPA, NIM, BOPO, and LDR affect profitability. The purpose of this study is to provide input on banking conditions so that banks can improve weaknesses so that banks can get the expected benefits.

Analisis Tingkat Kesehatan Keuangan Bank Central Asia Syariah Menggunakan Metode CAMEL Tahun 2020-2021

Bank soundness level is the ability of a bank to carry out normal banking operations and be able to fulfill all its obligations properly in a manner that is in accordance with applicable banking regulations. Bank health classification is divided into five categories, namely: very healthy, healthy, fairly healthy, less healthy and unhealthy. In the framework of implementing the requirements for the soundness of sharia banks, the predicate of Soundness Level is adjusted to the provisions in Bank Indonesia Circular Letter No. 6/23/DPNP dated May31, 2004. This type of research refers to using quantitative descriptive analysis method. So that in this study financial ratios use the method of analysis and assessment of Capital Asset Earnings Liqiuidity (CAMEL), CAMEL analysis reports the relationship between accounts in financial statements that reflect financial performance and banking results on aspects of Capital, Asset Quality , Management, Revenue , and Liquidity. Measurements that can be made using the relevant financial ratios to describe these five aspects. Financial ratios reflect the bank's ability to carry out the bank's core business, namely in collecting, processing, and distributing funds, fulfilling obligations to other parties, and complying with applicable banking laws and regulations. The results of the analysis of the bank's health financial statements will also provide information about the company's weaknesses and strengths. With these weaknesses and strengths, after being carried out in the research it will be illustrated the level of soundness of the bank using the CAMEL analysis method, this banking company has a healthy predicate.

Performance Analysis of Bankex Banks through Camel Model

Banks are barometer of every economy. Indian banks are well known for their closed and cautious operations. A sea change is experienced in operations of Indian banking sector due to varied reasons like tough competition from private banks, expectation of 24x7 banking services, financial inclusion and corporate as new entrant in banking sector Indian banks have been always appraised for their accuracy and firm foot-holding in the odd times, when other global banks were feeling the hiccups of financial turmoil such as subprime mortgage and recession. The report card of banks is evaluated on its operational efficiency and risk management practices adopted by banks. Fundamental ratio based analysis is a popular tool to appraise the performance of the banks. CAMEL model provides the roadmap of key ratios that can be utilized for evaluating the performance of the banks. Using, the renowned CAMEL Model, the paper comments on the performance of 14 major banks, which constitute the 'Bankex'indices. Descriptive research has been adopted to evaluate the 14 banks (7 public and private each) on CAMEL Model for a cross sectional data of 14 years period (2000-2013) over 22 variables (ratios). All the secondary data have been gathered from ACE Analyzer database and Money control website. Based on the composite ranking as per CAMEL analysis it was found that ICICI, IndusInd, Kotak Mahindra, Yes Bank and IDBI come in the cadre of top five banks. Bottom five banks list constituted of SBI, PNB, UBI, BOI and Axis. The major limitation of the study was that more banks could have been taken for study. Time horizon could have been expanded.

PERFORMANCE OF ISLAMIC AND CONVENTIONAL BANKING IN CAMEL ANALYSIS

This article tries to compare the financial performance of Islamic banks and conventional banks, to find out which of the two bank models has better performance. The research method used is descriptive with the CAMEL analysis approach, the selected sample is the 2018 monthly financial statements of BRI Syariah, BRI Conventional, Mandiri Syariah, and Mandiri Conventional. The results show that in general the financial performance of conventional banks is better than Islamic banks.

Pre-merger and post-merger performance analysis of Bank of Baroda-A camel analysis

Pre-merger and post-merger performance analysis of Bank of Baroda-A camel analysis