 Anatomic assessment of CAMEL in Nigerian bankingJonathan Njoku International Journal of Economics and Accounting, 2011, vol. 2, issue 1, 76-99 Abstract: This study aims to compare the anatomy of Nigerian bank financial condition with the CAMEL (capital adequacy, assets quality, management quality, earnings, liquidity) tool, which bank regulators use to gauge bank financial condition as part of off-site surveillance. An earlier paper used factor analysis to cast bank anatomy in terms of market presence, macro-economic condition, deposit mobilisation, prudence, earnings quality, market power and capital confidence (Njoku and Inanga, 2008b). Factor selection and weighting under the CAMEL model is by subjective judgement in contrast with the empirical approach of the anatomic model. Therefore, profiling one model against the other should deliver insight. Accordingly, this study deploys discriminant analysis to indicate significant descriptors at the univariate level. By profiling the anatomic descriptors against CAMELS, the study reports additional viable variables outside the CAMELS framework, thereby contributing to the elusive search for factors that influence bank financial condition. Keywords: bank anatomy; capital adequacy; assets quality; management quality; earnings; liquidity; CAMEL; Nigeria; banking industry; bank financial conditions; factor analysis; discriminant analysis; critical accounting; bank regulation; off-site surveillance. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijecac:v:2:y:2011:i:1:p:76-99 Access Statistics for this article More articles in International Journal of Economics and Accounting from Inderscience Enterprises Ltd |
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