Volume : IV, Issue : VI, June - 2014

CAMEL FRAMEWORK IN BANKS

Sandhya. Ch. V. L

Abstract :

As creators of money, depositories of public savings, allocators of credit and conduits of the payment system, the banks have a unique position in the economy of any country. To bolster the larger public interest, public policy for banks is put in place by the government, the goals of which may vary depending on the nature of economy and priorities of the government. One such policy is Camel rating which measures financial soundness of banks.

Objective of the study: Banks serve as backbone to the financial sector, which facilitate the proper utilization of financial resources of a country. The banking sector is increasingly growing and it has witnessed a huge flow of investment. In addition to simply being involved in the financial intermediation activities, banks are operating in a rapidly innovating industry that urges them to create more specialized financial services to better satisfy the changing needs of their customers. Banking supervision has been increasingly concerned due to significant loan losses and bank failures from the 1980s till now. In the light of the banking crisis in recent years worldwide, CAMEL is a useful tool to examine the safety and soundness of banks, and help mitigate the potential risks which may lead to bank failures. 

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

SANDHYA.CH.V.L CAMEL FRAMEWORK IN BANKS Indian Journal of Applied Research, Vol.IV, Issue.VI June 2014

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