Performance Analysis of Banks in Turkey Using CAMEL Approach

Dr. Mikail Altan (), Habib Yusufazari () and Aykut Bedük ()
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Dr. Mikail Altan: Selçuk University ?ktisadi ve ?dari Bilimler Fakültesi
Habib Yusufazari: Selcuk University Institute of Social Sciences
Aykut Bedük: Selçuk University ?ktisadi ve ?dari Bilimler Fakültesi

No 902916, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: This study attempts to extensively investigate the performance and financial soundness of state-owned and private-owned banks in community of Turkish banks for the period 2005-12. We have chosen one of the most popular methods for measuring banking performance, the CAMEL approach, which is an acronym for the terms, Capital adequacy, Asset quality, Management quality, Earnings quality and Liquidity. This approach was initially adopted by the Federal Financial Institution Examination Council on November 13th, 1979; then adopted by the National Credit Union Administration in October 1987 in the U.S.A. After selecting the model, we have chosen three State-Owned banks and twelve Private-Owned banks from the Turkish banking sector, which represent more than seventy percent of the banking system in terms of total assets. For our purpose evaluating data for eight years, these data were analyzed by calculating 23 ratios related to CAMEL Model. The results indicated that on the overall performance, in the CAMEL rating model Ziraat Bank was in top position followed by Ak Bank and Vakif Bank. Tekstil Bank had the lowest rank in most positions. It was also observed that there is a significant difference between performance of state-owned and private-owned in Turkish banking system.

Keywords: Banking; CAMEL Approach; Performance Analysis (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2014-12
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-eff
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Citations: View citations in EconPapers (4)

Published in Proceedings of the Proceedings of the 14th International Academic Conference, Malta, Dec 2014, pages 21-32

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:0902916

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