Determining Bank performance using CAMEL rating: A comparative study on selected Islamic and Conventional Banks in Bangladesh
Asian Business Review
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Title |
Determining Bank performance using CAMEL rating: A comparative study on selected Islamic and Conventional Banks in Bangladesh
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Creator |
Rafiq, Md. Rafiqul Islam; Lecturer, Department of Economics & Banking, International Islamic University Chittagong, Chittagong-4318, BANGLADESH
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Subject |
Bank Performance, Islamic Bank, Conventional Bank, CAMEL
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Description |
The present article seeks to examine the determinants of the bank profitability in a developing country like Bangladesh and to compare the performance of Islamic and conventional banks during the period 2008 - 2014. Specifically working within the Bangladeshi financial sector, the analysis is confined to the domestic commercial banks operating in the Bangladeshi financial sector during the period 2008-2014. In order to achieve the study objectives and to answer some questions, the ratio analysis and CAMEL has been used. The study found that the higher capital ratio, Tier-1, and growth in total deposits for Islamic banks than conventional banks. On the other hand, Islamic banks are not able to good perform with ROA, ROE and cost-to-income ratio while conventional banks showed satisfactory performance in utilizing funds which was proved in this analysis as high ROA, ROE and cost-to-income ratio. This study shows that management efficiency regarding operating expenses positively and significantly affects the banks’ profitability. JEL Classifications: G2, G22, H12, G14 Handle: http://hdl.handle.net/20.500.11903/abr.v6n3.4
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Publisher |
Asian Business Consortium
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Contributor |
—
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Date |
2016-12-07
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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Format |
application/pdf
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Identifier |
http://journals.abc.us.org/index.php/abr/article/view/883
10.18034/abr.v6i3.883 |
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Source |
Asian Business Review; Vol 6, No 3 (2016): 15th Issue; 151-160
2305-8730 2304-2613 |
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Language |
eng
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Relation |
http://journals.abc.us.org/index.php/abr/article/view/883/716
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Rights |
Copyright (c) 2016 Md. Rafiqul Islam Rafiq
http://creativecommons.org/licenses/by-nc/4.0 |
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