The impact of applying the CAMELS Banking evaluation model on Islamic Banks in Arab Countries: A comparative study of Qatar Islamic Bank and Al Baraka Bank of Algeria during the period (2018-2023)

Authors

  • Ousama Thamer University of M'sila, M'sila, Algeria
  • Adam Ghaouti National Higher School of Islamic Sciences Dar-elcoran, Algiers, Algeria

Keywords:

Performance Evaluation, CAMELS Model, Qatar Islamic Bank, Al Baraka Bank Algeria

Abstract

The purpose of this report is to analyze the financial performance of Qatar Islamic Bank and Al Baraka Bank Algeria by the help of CAMELS model from 2018 to 2023. CAMELS is the most important model that is generally used to find out the financial performance of the banks by emphasizing the several aspects such as capital adequacy, asset quality, management quality, earnings, liquidity, and sensitivity to market risk. By utilizing the composite ratings of each bank, this research found out the general performance of these two banks in different economic and regulatory settings. The results showed that Al Baraka Bank Algeria got a satisfactory rating. In contrast, Qatar Islamic Bank showed an average rating as it lacked liquidity and was sensitive to market risk.

References

Al Baraka Bank Algeria. (n.d.). Annual Reports. Retrieved 12 25, 2024, from Al Baraka Bank Algeria: https://www.albaraka-bank.dz/

Ali, M. M.-T. (2019). Evaluating Commercial Banks According to the CAMELS Model Using a Comparative Approach: An Applied Study on a Sample of Private Commercial Banks. Al-Muthanna Journal of Administrative and Economic Sciences, 9(1).

Al-Khammas, H. M.-M. (2022). The Impact of Applying the American CAMELS Bank Evaluation Model as a Supervisory Tool on Iraqi Private Commercial Banks for the Period 2016–2020. Journal of Accounting and Financial Studies, 17(58).

Al-Musawi, A. A., Al-Dahan, J. M., & Al-Jubouri, H. K. (2018). Using the CAMELS model as a tool to measure banking soundness. The Iraqi Journal of Administrative Sciences, 14(58).

Bounihi, H. M. (2021). Evaluating the Performance of Islamic Banks Compared to Conventional Banks Using the CAMELS Model. Journal of Research in Financial and Accounting Sciences, 6(1).

Chena, F. B. (2018). Factors Affecting the Profitability of Commercial Banks Using the CAMELS Model: An Applied Study on Algerian Commercial Banks During the Period 2005–2014. Al-Bahith Journal, 18(1).

Choucha, B. O. (2017). The Impact of Applying the CAMELS Bank Evaluation System on Enhancing Oversight of Commercial Banks. The Economic Researcher Journal(8).

Christopoulos, A., & Mylonakis, J. (2011). Could Lehman Brothers Collapse Be Anticipated? An Examination Using CAMELS Rating System. Journal of International Business Research, 4(2).

Dhaigham, M. H. (2020). Evaluating Banking Performance According to the CAMELS Model: An Applied Study on Al-Mansour Investment Bank for the Period 2014–2018. Journal of Economics and Administrative Sciences, 26(117).

Ferrouhi, E. M. (2014). Moroccan Banks Analysis Using CAMEL Model. International Journal of Economics and Financial Issues, 4(3).

Ghazavi, M., & Bayraktar, S. (2018). Performance Analysis of Banks in Turkey Using CAMELS Approach – Case Study: Six Turkish Banks During 2005 to 2016. Journal of Business Research, 10(2).

Huna, N. A.-K. (2018). Using the CAMEL System to Analyze Capital Adequacy, Profitability, and Liquidity: A Sample of Iraqi Banks. Al-Ghari Journal for Economic and Administrative Sciences, 5(2).

Kroumi, A. (2022). Evaluating the performance of commercial banks using the CAMELS model: An applied study on the Arab Banking Corporation during 2010–2019. Al-Bashaer Economic Journal, 8(1).

Mohammed, S. F.-T. (2013). Predicting Banking Crises Using the CAMELS Standard: An Applied Study on a Group of Jordanian Commercial Banks. Tikrit Journal of Administrative and Economic Sciences, 9(27).

Nasir, M. E.-B. (2017). Evaluating Bank Performance Using the CAMELS Model: The Case of the National Bank of Algeria During the Period 2014–2015. Economic Additions Journal(2).

Qatar Islamic Bank. (n.d.). Annual Reports. Retrieved 12 22, 2024, from Qatar Islamic Bank: https://www.qib.com.qa/ar/

Rozzani, N., & Rahman, A. (2013). CAMELS and Performance Evaluation of Banks in Malaysia: Conventional Versus Islamic. Journal of Islamic Finance and Business Research, 2(1).

Saad Abdulhamid Mutawe, M. A.-B.-Z. (2018). Evaluating Bank Performance According to the CAMEL Rating System: An Applied Study on Yemeni Banks. Journal of Contemporary Commercial Research, 32(3).

Published

2025-05-06

How to Cite

Thamer, O., & Ghaouti, A. (2025). The impact of applying the CAMELS Banking evaluation model on Islamic Banks in Arab Countries: A comparative study of Qatar Islamic Bank and Al Baraka Bank of Algeria during the period (2018-2023). International Journal of Economic Perspectives, 19(5), 1781–1798. Retrieved from https://ijeponline.org/index.php/journal/article/view/1004

Issue

Vol. 19 No. 5 (2025): Online First

Section

Peer Review Articles
Copyright & Licensing

Copyright (c) 2025 Ousama Thamer, Adam Ghaouti

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Allows users to: distribute and copy the article; create extracts, abstracts, and other revised versions, adaptations or derivative works of or from an article (such as a translation); include in a collective work (such as an anthology); and text or data mine the article. These uses are permitted even for commercial purposes, provided the user: gives appropriate credit to the author(s) (with a link to the formal publication through the relevant URL ID); includes a link to the license; indicates if changes were made; and does not represent the author(s) as endorsing the adaptation of the article or modify the article in such a way as to damage the authors' honor or reputation. CC BY