Ranking Iranian Private Banks Based on the CAMELS Model Using the AHP Hybrid Approach and TOPSIS

Shiva Ghasempour and Mohamadjavad Salami ()

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2016, vol. 6, issue 4, 52-62

Abstract: This research was done to evaluate and compare performance of Iranian banks based on the CAMELS rating system. For this purpose, after studying the related literature, factors relating to efficiency and soundness were identified and used to assess banks; these were Capital Adequacy, Asset Quality, Management Capability, Earnings, Liquidity, and Sensitivity to Market Risk. Then, an importance coefficient was determined for each of these factors using the Analytical Hierarchy Process. Iranian private banks were then ranked according to evaluations on indices from audited financial statements at the end of the Solar year 1993 (March 2015) and the TOPSIS method. Results determined high-ranking banks as follows: Pasargad Bank, Khavarmiane, Karafarin, Sina and Ansar.

Keywords: Analytical hierarchy process; banks ranking; CAMELS; performance; TOPSIS (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:hur:ijaraf:v:6:y:2016:i:4:p:52-62

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