Using the CAMELS Model and its Impact on Banking Governance to Evaluate the Performance of Banks - A Case Study - Bank of Baghdad

Abstract

The research aims to demonstrate the impact of banks’ use of the CAMELS model for the research sample on banking governance to assess the performance of banks. 6 equations that form the strength of the basic CAMELS model were used on the data of the financial statements of the Bank of Baghdad. Two questionnaires for the bank were prepared through direct questions related to the CAMELS model and its impact on Banking governance in terms of evaluating banking performance. Statistical measures were used to prove the existence of a correlation between the use of the model and banking governance, and thus prove or deny the research hypothesis. The most important conclusions of the research: (there is a positive, medium-strength direct correlation between the use of the CAMELS model and banking governance to evaluate performance), and based on these conclusions, a set of recommendations were reached, the most important of which is: (the need for banks to use more than one method for evaluating performance in the fluctuations that affect the financial and banking environment in Iraq).