Using the CAMELS model as a tool to measure banking safety “An analytical study of a sample of banks listed on the Iraqi Stock Exchange for the year 2017”

"دراسة تحليلية لعينة من المصارف المدرجة في سوق العراق للأوراق المالية لسنة 2017"

Abstract

The aims of research is classify the most important banks listed in the Iraqi stock exchange according to the degree of banking soundness using the evaluation criteria CAMELS. This research included to testing of 23 commercial and Islamic private sector banks for 2017 and determining which banks are the most efficient for support the depositors confidence and investors. Thus enhancing its role in the financial services sector as a whole via identifying bank risks that are the weak points of the Bank's financial, operational and administrative. This research tested one main hypothesis (CAMELS contributes to the assessment of banking safety and guidance of decision makers). The results showed that all banks research sample that tested has not achieved the degree of rating (strong) in all six indicators combined the specimen. However, all of them achieved the strongest degree in accordance with the capital adequacy standard adopted by the Central Bank of Iraq for all commercial and Islamic banks. The most important recommendations were to emphasize the need for an annual ranking of all Iraqi banks, government or private commercial or Islamic to create a spirit of competition between banks as well as support the confidence of customers with the banking sector.