Camel approach for evaluating the healthy and sound banking performances- case study
Camel approach for evaluating the healthy and sound banking performances- case study

Summary/Abstract: Banking sector plays an important role in economy and has significant impact on country’s economic growth. The purpose of this study is by utilizing CAMELS approach to analyses the determinants of commercial banks’ profitability through case study-Kosovo. Performance evaluation of commercial banks is grounded on the CAMEL approach, exploiting data for the period 2013 -2016 for 10 commercial banks. For the research purpose, the return on assets (ROA) is taken as a dependent variable, whereas capital adequacy (C), asset quality (A), management competency (M), earnings (E) and liquidity (L) represent the independent variables. The regression analysis indicate that that commercial banks profitability in Kosovo has been driven mainly by factors such as capital adequacy, earnings and liquidity.

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