PERFORMANCE ANALYSIS OF BANKING INSTITUTION THROUGH THE RATINGS SYSTEM CAMELS AND ITS IMPROVEMENT
Journal Title: The Institute of Accounting, Control, and Analysis in the Globalization Circumstances - Year 2016, Vol 4, Issue 4
Abstract
Introduction. The stability and profitability of the banking institution is under permanent the influence of various negative factors in the period of wake of economic transition, financial and political crisis. Application of rating system CAMELS and its continuous improvement is important for timely and accurate assessment of the current condition of banks. Methods. The main methods used in writing the article are the followings: observation, comparison, analysis, synthesis, induction and systematic approach. Legislative acts of Ukraine and financial results of PJSC CB "PrivatBank" for 2015 were used there to complete the study. Results. The nature of the rating system CAMELS and its main components have been analyzed while studying. We have described the main stages on which we have defined a comprehensive rating. The basic factors which are used in the rating system are described on the example of the financial results of the bank. The system of ratings Camels (improved system CAMELS), its peculiarities in Ukraine and differences from foreign method are analyzed and described. Discussion. It was detected by the results of the study that the system of ratings is constantly being improved and modified depending on the characteristics and changes in the economic environment of the country. The introduction of CAMELS is a striking example of this. Continuous tracking features of the financial condition of banks and improving the work of rating systems are essential for smooth operation and profitability of the banking system.
Authors and Affiliations
Juliana Prymak
Keywords
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- EP ID EP185816
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