Advertisement

A CAMELS Analysis of Selected Banks in Turkey After the Crisis in 2008

  • Mustafa Eser KurumEmail author
  • Eray Öztürk
Chapter
  • 11 Downloads
Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Abstract

Banking industry can be appeared as one of the most functional and dynamic engines of the economy; especially of the developing economies, by providing funds for growth. Hence, problems stemming from this industry tend to be more contagious. Therefore, monitoring banking system has become more vital in the light of fact that the world speed of experiencing crisis had increased. In that context one of the most popular supervision system, CAMELS analyses, provide researchers a comprehensive, standardized and effective way to monitor, and detect problems in banks. By this study four biggest bank in Turkey, in terms of their asset size and profitability, were analyzed for the period between 2011 and 2018, when the effect of the crisis in 2008 had started to diminish in Turkish Economy. A CAMELS analysis was employed with 30 ratios in order to evaluate banks performances. Results demonstrated that two out of four banks (Akbank and Ziraat Bank) seemed to improved and reached a satisfactory performance after the crisis in terms of all components of CAMELS, while Garanti Bank’ performance fluctuated over the period and İşbank has not managed to increase its scores and forestall deteriorating.

References

  1. Abdullayev, M. (2013). Türk bankacılık sektöründe dezenflasyon sürecinde camels analizi. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 37, 97–112.Google Scholar
  2. Ahmedov, T., & Memmedov, E. (2017). Azerbaycan Bankacılık Sektörünün CAMELS Analizi: Yabancı Sermayeli 10 Banka. İktisadi İdari ve Siyasal Araştırmalar Dergisi, 2(4), 97–109.Google Scholar
  3. Ahsan, M. K. (2016). Measuring financial performance based on CAMEL: A study on selected Islamic banks in Bangladesh. Asian Business Review, 6(1), 7–56.CrossRefGoogle Scholar
  4. Atikogullari, M. (2009). An analysis of the northern Cyprus banking sector in the post-2001 period through the CAMELS approach. International Research Journal of Finance and Economics, 32(10), 212–229.Google Scholar
  5. Avkiran, N. K. (1994). Developing an instrument to measure customer service quality in branch banking. The International Journal of Bank Marketing, 12(6), 10–18.CrossRefGoogle Scholar
  6. Bayramoglu, M. F., & Gürsoy, İ. (2017). Türkiye’de Faaliyet Gösteren Mevduat Bankalarinin Bireysel ve Sektörel Risk Derecelendirmesi: Bir Camels Analizi Uygulamasi. Yönetim ve Ekonomi Araştırmaları Dergisi, 15(1), 1–19.Google Scholar
  7. Çağıl, G., & Mukhtarov, S. (2014). Azerbaycan Ticari Bankacılık Sektörünün CAMELS Yöntemi ile Performans Analizi. Öneri Dergisi, 11(41), 77–94.CrossRefGoogle Scholar
  8. Caton, W. F. (1997). Uniform financial institutions rating system. Federal Register, 62(3), 752–757.Google Scholar
  9. Christopoulos, A. G., Mylonakis, J., & Diktapanidis, P. (2011). Could Lehman Brothers’ collapse be anticipated? An examination using CAMELS rating system. International Business Research, 4(2), 11.CrossRefGoogle Scholar
  10. Çinko, M., & Avcı, E. (2008). CAMELS Derecelendirme Sistemi ve Türk Ticari Bankacılık Sektöründe Başarısızlık Tahmini. BDDK Bankacılık ve Finansal Piyasalar Dergisi, 2(2), 25–48.Google Scholar
  11. Dang, U. (2011). The CAMEL rating system in banking supervision: A case study of Arcada University of applied sciences. International Business, 5(3), 82–103.Google Scholar
  12. Dash, M., & Das, A. (2009). A CAMELS analysis of the Indian banking industry. Available at SSRN 1666900.Google Scholar
  13. Dincer, H., Gencer, G., Orhan, N., & Sahinbas, K. (2011). A performance evaluation of the Turkish banking sector after the global crisis via CAMELS ratios. Procedia-Social and Behavioral Sciences, 24, 1530–1545.CrossRefGoogle Scholar
  14. Dinçer, H., Yüksel, S., & Pınarbaşı, F. (2020). Kano-based measurement of customer expectations in retail service industry using IT2 DEMATEL-QUALIFLEX. In E. Baykal (Ed.), Handbook of research on positive organizational behavior for improved workplace performance (pp. 349–370). Hershey, PA: IGI Global.CrossRefGoogle Scholar
  15. Ege, İ., Topaloğlu, E., & Karakozak, Ö. (2015). CAMELS performans değerleme modeli: Türkiye’deki mevduat bankalari üzerine ampirik bir uygulama. Niğde Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 8(4), 109–126.Google Scholar
  16. Eti, S., Kalkavan, H., Dinçer, H., & Yüksel, S. (2020). Predicting the role of Islamic banking on sustainable economic development: An analysis for Turkey with ARIMA model. In U. Akkucuk (Ed.), Handbook of research on creating sustainable value in the global economy (pp. 146–164). Hershey, PA: IGI Global.CrossRefGoogle Scholar
  17. Grier, W. A. (2007). Credit analysis of financial institutions. London: Euromoney Books.Google Scholar
  18. Gümüş, F. B., & Nalbantoğlu, Ö. (2015). Türk Bankacılık Sektörünün CAMELS Analizi Yöntemiyle 2002–2013 Yılları Arasında Performans Analizi. Journal of Economics & Administrative Sciences/Afyon Kocatepe Üniversitesi Iktisadi ve Idari Bilimler Fakültesi Dergisi, 17(2).Google Scholar
  19. Gündoğdu, A. (2017). Türkiye’de Mevduat Bankalarının CAMELS Analizi. Bankacılık ve Finansal Araştırmalar Dergisi (BAFAD), 4(2), 26–43.Google Scholar
  20. Güney, S., & Ilgın, K. S. (2015). Finansal Krizlerin Bankalarin Performanslarina Etkisi: Türk Mevduat Bankalarinda Camels Modelinin İncelenmesi Ve Örnek Bir Uygulama. Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 17(3), 303–331.CrossRefGoogle Scholar
  21. Helhel, Y., & Varshalomidze, M. (2014). Gürcistan’da faaliyet gösteren yerli sermayeli özel ticari bankaların CAMELS derecelendirme sistemi ile değerlendirilmesi. Finans Sempozyumu Denizli/15–18 Ekim (pp. 413–424).Google Scholar
  22. Hempel, G., Coleman, A., & Smon, D. (1986). Bank management text and cases. New York: Wiley.Google Scholar
  23. Hyz, A., & Gikas, G. (2015). CAMELS and Greek banking sector performance during the crisis an analysis and review of the evidence. Acta Universitatis Lodziensis. Folia Oeconomica, 5(316), 27–39.Google Scholar
  24. Kalkavan, H., & Ersin, I. (2019). Determination of factors affecting the South East Asian crisis of 1997 probit-logit panel regression: The South East Asian crisis. In H. Dinçer & S. Yuksel (Eds.), Handbook of research on global issues in financial communication and investment decision making (pp. 148–167). Hershey, PA: IGI Global.CrossRefGoogle Scholar
  25. Kandemir, T., & Arıcı, A. G. N. D. (2013). Mevduat Bankalarında Camels Performans Değerleme Modeli Üzerine Karşılaştırmalı Bir Çalışma (2001–2010). Suleyman Demirel University Journal of Faculty of Economics & Administrative Sciences, 18(1), 61–87.Google Scholar
  26. Kaya, Y. T. (2001). Türk Bankacılık Sektöründe CAMELS Analizi. Bankacılık Düzenleme ve Denetleme Kurumu, MSPD Çalışma Raporları, 6, 1–20.Google Scholar
  27. Kılıç, Ç., & Fettahoğlu, A. (2005). Türk Bankacılık Sektörünün CAMELS Analizi İle Değerlendirilmesi. Ulusal Finans Sempozyumu, 89–128.Google Scholar
  28. Kumar, M. A., Harsha, G. S., Anand, S., & Dhruva, N. R. (2012). Analyzing soundness in Indian banking: A CAMEL approach. Research Journal of Management Sciences ISSN, 2319, 1171.Google Scholar
  29. Mitchell, K. (1984). Capital adequacy at commercial banks. Economic Review, Sep, 17–30.Google Scholar
  30. Nimalathasan, B. (2008). A comparative study of financial performance of banking sector in Bangladesh. An application of CAMELS rating system. Universitatii Bucuresti. Analele. Seria Stiinte Economice si Administrative, 2, 133.Google Scholar
  31. Raiyani, J. R. (2010). Effect of mergers on efficiency and productivity of Indian banks: A CAMELS analysis. Asian Journal of Management Research, 1(2), 772–794.Google Scholar
  32. Roman, A., & Şargu, A. C. (2013). Analysing the financial soundness of the commercial banks in Romania: An approach based on the camels framework. Procedia Economics and Finance, 6, 703–712.CrossRefGoogle Scholar
  33. Rostami, M. (2015). Determination of Camels model on bank’s performance. International Journal of Multidisciplinary Research and Development, 2(10), 652–664.Google Scholar
  34. Rozzani, N., & Rahman, R. A. (2013). Camels and performance evaluation of banks in Malaysia: Conventional versus Islamic. Journal of Islamic Finance and Business Research, 2(1), 36–45.Google Scholar
  35. Sakarya, Ş. (2010). Camels Derecelendirme Sistemine Göre İMKB’deki Yerli ve Yabancı Sermayeli Bankaların Karşılaştırmalı Analizi. Akademik Araştırmalar ve Çalışmalar Dergisi (AKAD), 7–21.Google Scholar
  36. Şen, A., & Solak, S. (2011). Ticari bankacılık sektörünün CAMELS analizi: Türkiye örneği. Finans Politik & Ekonomik Yorumla, 2011, 554.Google Scholar
  37. Siems, T. F., & Barr, R. S. (1998). Benchmarking the productive efficiency of US banks. Financial Industry Studies, 4, 11–24.Google Scholar
  38. Şimşek, T., Aslan, E., & Şahin, A. (2017). Türk Bankacılık Sektörünün 2001–2015 Dönemi İçin CAMELS Yöntemiyle Performans Analizi. Bilgi Ekonomisi ve Yönetimi Dergisi, 12(2), 155–167.Google Scholar
  39. Tükenmez, N. M., Kutay, N., & Akkaya, G. C. (2010). Kamu ve özel sermayeli ticari bankalarda CAMELS Performans Değerleme Modeli üzerine bir inceleme. Iktisat Isletme ve Finans, 25(293), 95–112.Google Scholar
  40. Wirnkar, D., & Tanko, M. (2008). CAMELs and banks performance evaluation: The way forward. Viewed August 5, 2014.Google Scholar
  41. Yuksel, S., Dincer, H., & Hacioglu, U. (2015). CAMELS-based determinants for the credit rating of Turkish deposit banks. International Journal of Finance & Banking Studies (2147–4486), 4(4), 1–17.CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.İstanbul Yeni Yüzyıl UniversityİstanbulTurkey

Personalised recommendations