Post-Crisis Bank Profitability in BRICS: A CAMEL Approach

Taiwo Aderogba, Ibrahim Ayoade Adekunle and Olayinka Esther Atoyebi

Journal of Emerging Market Finance, 2025, vol. 24, issue 3, 360-384

Abstract: This study investigates post-crisis bank profitability in Brazil, Russia, India, China and South Africa (BRICS) economies, utilizing a panel dataset from the financial statements of listed banks in three BRICS countries for the post-global financial crisis period of 2009–2020. Utilizing the dynamic system generalized method of moment (SGMM) estimation, the findings demonstrate that profitability is path dependent, with past performance significantly influencing future profitability, and driven by CAMEL factors—capital adequacy, asset quality, management quality, earnings, and liquidity. Internal factors such as capital management, risk-taking, and operational efficiency play prominent roles, while the effects of external elements such as bank size and broader economic conditions are more subtle. The results provide valuable insights into how varying regulatory environments and post-crisis financial conditions across BRICS nations shape bank profitability, emphasizing the need for effective risk management and capital allocation strategies to sustain profitability during periods of economic uncertainty. JEL Codes: G01, G15, G21, H81, L25

Keywords: CAMEL; CAMELS-DEA; BRICS; bank profitability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:emffin:v:24:y:2025:i:3:p:360-384

DOI: 10.1177/09726527251335991

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