The Effect of Applying the Bank Evaluation Model (CAMELS) in Improving Financial Performance Based On The Sustainable Balanced Scorecard

Abstract

Abstract The study aims to reach a set of objectives, the most important of which is knowing the level of banking supervision application of the CAMELS model and the impact of its application level on improving and evaluating banking performance according to its six elements and indicators for each element and its ability to give an evaluation and classification of banks, as well as knowing the extent to which Iraqi banks depend on the balanced scorecard. Sustainable measurement and evaluation of performance in commercial banks. This applied study tagged “The Impact of Applying the Banking Evaluation Model (CAMELS) in Improving Financial Performance Based on the Sustainable Balanced Scorecard, which is an applied study in three commercial banks listed in the Iraq Stock Exchange, and they are (The Iraqi Investment Bank, The Commercial Eqleem Bank, and the National Bank of Baghdad) . The framework extends The timeline of the study is from (20172021-) and the study comes at a time when the importance of banking evaluation in terms of performance is increasing, as the interest of bank management on the one hand and those with capital on the other hand is focused on finding appropriate criteria to assess and know the level of performance of banks, which results in making financial decisions The study reached a set of conclusions, the most important of which are: It was found that the CAMELS banking evaluation system depends on the six indicators (capital adequacy, asset quality, management efficiency, profitability, liquidity, and risk sensitivity). market without taking into account the environmental and social dimension, in addition to not relying on non-financial indicators in its six indicators. The Central Bank of Iraq, amounting to (30%), and the conclusions showed that the sustainable balanced scorecard is one of the modern models for evaluating the comprehensive performance of the institution, including financial and non-financial indicators, and there is a possibility to develop the sustainable balanced scorecard by adding one or more perspectives to integrate with the four original perspectives This is according to the institution’s need and in line with the achievement of its strategic objectives.