The goal of bank performance evaluation is to guarantee that the resources at their disposal
are utilized efficiently. Financial performance analysis is a critical tool for recognizing the
bank's weaknesses and strengths across its numerous activities.
The CAMELS technique is regarded a supervisory tool to evaluate bank performance based
on several aspects, according to the literature review. Regulators use both on-site and off?site monitoring tools to assess a bank's financial stability. The CAMELS rating system
encourages transparency, evolution, and change in all financial institutions. Furthermore,
this method identifies the structural strengths and weaknesses of financial organizations.
`This study conducts a comparative analysis of Islamic and conventional banks in Qatar
using the CAMELS rating scale from 2015 to 2020. A sample of 14 banks in Qatar was
used, four of which were Islamic while the others were conventional.
The findings indicate that Islamic banks showcase clear superior performance in Qatar,
while outperforming their conventional counterparts in many variables. However, none of
the banks in Qatar were able to obtain a rating of 1, indicating there are areas of weaknesses
that need to be worked on, particularly in the area of liquidity which was a critical factor
for all banks.
The Qatar Central Bank should improve monitoring and screening of all Islamic banks in
Qatar, according to this study. Furthermore, it is suggested that the Qatar central bank
employs the CAMELS system to track operations and field offices for banks functioning
to facilitate access to a stable banking sector on a regular basis. CAMELS can be used by
banks to track their performance, and then the necessary actions must be undertaken.
Date of Award | 2022 |
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Original language | American English |
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Awarding Institution | - HBKU College of Islamic Studies
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- Banking
- CAMELS Model
- Conventional Banks
- Financial Performance
- Islamic Banks
- Islamic Finance
FINANCIAL PERFORMANCE OF ISLAMIC AND CONVENTIONAL BANKS IN QATAR: A COMPARATIVE ANALYSIS
Vahab, S. (Author). 2022
Student thesis: Master's Dissertation