Performance evaluation of ten most predominant banks in Bangladesh following the CAMELS approach

Abstract

The growing economy of Bangladesh has caused introduction of new banks while existing ones are focusing on prospective developments. As impacts of various reasons, banks are not able to maintain consistency. This study comprehensively evaluates the financial soundness of ten banks which are selected according to the widespread network across the country. CAMELS approach has been addressed because it is one of the most credible methods of measuring bank’s performance. Qualitative and quantitative data were collected from the annual reports, related researches and academics that served as rich sources of reference. Quantitative portion incorporated reviewing data that are average of last 3 years. The results showed that BRAC Bank secured first rank while Al-Arafah Islami Bank stood second; however, Rupali Bank Limited stood last in the ranking. It was comprehended that there are other major aspects beyond evaluating the listed ratios under CAMELS that increased the reliability of the ranking developed.