Volume 17, Number 2, December 2022
| Measuring Financial Performance Based on CAMEL Rating Model on selected commercial Banks in Jordan |
Abstract
This study evaluated the financial performance of three selected operating commercial banks in Jordan (Jordan commercial bank, Bank of Jordan, Bank Al Etihad) listed on Amman Stock Exchange for the period (2016 – 2021) applying the CAMEL model. We use the secondary data from the annual financial reports for the banks. The estimated results using the CAMELS model show that the average for the evaluation of selected Jordanian commercial banks during 2016 - 2021 was acceptable, in detail: Jordan commercial Bank & Bank al Etihad have a fair performance with Rank 3, which mean that the bank in this rank have a financial or operational weaknesses. Bank of Jordan has a satisfactory performance with Rank 2, which mean Bank is primary good but has identified weaknesses. Results show that the banking sector in Jordan maintained sound and resilient financial and administrative conditions.
Keywords: CAMEL, Commercial Bank, Capital Adequacy, ROA, ROE, Jordan
JEL Classification: G21, M41, O16