Financial Performance of Commercial Banks in Jordan: Application of the CAMELS Model

Jawarneh Saleh (2021) Financial Performance of Commercial Banks in Jordan: Application of the CAMELS Model. Prosperitas, 8 (2). ISSN 2786-4359

Szöveg Saleh Jawarneh 211214.pdf - Megjelent verzió Download (290kB)

Abstract

The study aims to analyse and rank the financial performance of Jordanian commercial banks using the elements of the CAMELS model. The study relies on a sample of 12 Jordanian commercial banks listed on the Amman Stock Exchange during the period 2016–2020. The study used variables included in the CAMELS model, namely: capital adequacy, asset quality, management efficiency, profitability, liquidity, and sensitivity to market risks. The research results indicate that Jordanian commercial banks enjoy high Capital Adequacy Ratios that exceed the minimum required by the Central Bank of Jordan and the Basel Committee. Jordanian banks have a strong sensitivity to market risks; therefore, they can control market risks and face any risk to which they may be exposed as well as the variety of the securities invested in these banks. Jordanian commercial banks are also characterized by a good earning ability. On the other hand, Jordanian commercial banks have a weak asset quality, and they also maintain weak and insufficient liquidity ratios to meet any unforeseen needs. These banks also show weak management efficacy, and this rating reflects weak management in expense controls.

Tudományterület / tudományág

társadalomtudományok > közgazdaságtudományok

Kar

Pénzügyi és Számviteli Kar

Intézmény

Budapesti Gazdasági Egyetem

Mű típusa:	Cikk
Szerző publikációban használt neve:	Publikációban használt név ORCID MTMT szerző azonosító Jawarneh Saleh
Kulcsszavak:	CAMELS Model, financial performance, commercial banks, ranking, Jordanian banks
Felhasználó:	Eszenyi-Bakos Kinga
DOI azonosító:	https://doi.org/10.31570/prosp_2021_0004
Rekord készítés dátuma:	2021. Dec. 15. 10:11
Utolsó módosítás:	2023. Jan. 30. 10:13
URI:	http://publikaciotar.uni-bge.hu/id/eprint/1820

Actions (login required)

Tétel nézet