Financial Performance Evaluation of Al-Jumhouria and Al-Yaqeen BanksUsing the American CAMEL Rating Standard

Abstract

The study aims to measure and evaluate the financial performance of Al-Jumhouria Bank and Al-Yaqeen Bank, using the CAMEL rating system, during the period 2019 - 2023. Financial reports from Al-Jumhouria and Al-Yaqeen banks were utilized as the basis for analysis, where the CAMEL rating indicators were applied to assess aspects of capital, asset quality, management, profitability and liquidity over the period. The results showed that the overall rating of Al-Yaqeen bank demonstrated excellent performance whereas Al-Jumhouria bank exhibited good performance. The analysis highlighted that both banks have high capital adequacy and excellent asset quality. However, the analysis results indicated that both banks have a shortcoming in the management's ability to invest the bank's assets and maintain a high level of liquidity instead of investing it, which negatively affected the profitability of both banks. There is a clear variation in the indicators, indicating the presence of strengths and weaknesses that require addressing and improvement. Based on the result the study recommends adopting the model as a tool to oversight and performance evaluation within the local banking sector.