Measuring Performance of the Serbian Banking Sector Using Camels Model

Realization of the undeniable role of banks in the functioning of the economic system assumes their successful business, based on the achievement of key financial performance. Interrelatedness and interdependence of bank performance indicators, their dynamic relationship, and interaction, on the one...

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Bibliographic Details
Published inTeme Vol. XLII; no. 3; pp. 961 - 977
Main Authors Todorović, Violeta, Furtula, Srđan, Durkalić, Danijela
Format Journal Article
LanguageEnglish
Published University of Niš 2018
Универзитет у Нишу
Subjects
Financial Markets
profitability
CAMELS
capital adequacy
financial performance
liquidity
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Summary:Realization of the undeniable role of banks in the functioning of the economic system assumes their successful business, based on the achievement of key financial performance. Interrelatedness and interdependence of bank performance indicators, their dynamic relationship, and interaction, on the one hand, as well as differences and contradictions, on the other hand, require precise monitoring and harmonization by banks, in order to achieve adequate business results and minimize negative financial developments. In this sense, it is very important to choose appropriate ways to measure and manage bank performance. A key role in this process belongs to a banking rating system, measured by CAMELS model. Therefore, the paper attempts a comprehensive analysis of bank performance measurement, using CAMELS model. The aim is to examine the possibility of applying this model to effectively measure the performance of the banking sector in the Republic of Serbia.
ISSN:0353-7919