THE ASSESSMENT OF THE SITUATION IN BANKING SECTORS IN SELECTED EUROPEAN COUNTRIES
DOI:
https://doi.org/10.12775/EiP.2016.012Keywords
CAMELS, banking sector, Western Balkan, Baltic statesAbstract
The economic significance of the banking sector is well recognized in the theory and practice. In the literature there are discussed various topics concerning banking: banking sectors stability and its determinants, as well as influence of the banking sector on other sectors of the economy. Moreover the situation in the banking sector has been studied from different perspectives: its stability, profitability, efficiency, competition, concentration. A special part of literature is related to economies in transition. Therefore aim of the article is to conduct a comparative analysis of the financial standing of the banking sectors in selected countries of the Western Balkans, i.e. Bosnia and Herzegovina, Macedonia and Croatia, and current Baltic States (former republics of the USSR), i.e. Lithuania, Latvia and Estonia, few years after the financial crisis. Thanks to the use of the CAMELS method it is possible to check which banking sectors are in better shape: these which are only at the initial stage of transformation of the banking sectors or these where the transformation of this sector has been already completed. The data was collected from International Monetary Fund covering the period of five years 2010–2015, on quarterly basis.References
Albulescu C.T., Coroiu S.I., Early warning system for the Romanian banking sector: the CAAMPL approach, “The Annals of the University of Oradea. Economic Scienc-es”, Vol. 3, No. 1/2009.
Allen F., Gale D., Financial Contagion, “Journal of Political Economy”, Vol. 108, No. 1/2001, http://dx.doi.org/10.1086/262109,
Atikogullari M., An Analysis of Norther Cyprus Banking Sector in the Post — 2001 period Through the CAMEL approach, “International Research Journal of Finance and Economics”, No. 32/2009.
Barker D., Holdsworth D., The Causes of Bank Failures in the 1980s, “Federal Reserve Bank of New York Research Paper”, No. 9325/1993.
Barr R.S., Killgo K.A., Siems T.F, Zimmel S., Evaluating the productive efficiency and performance of US commercial banks, “Managerial Finance”, Vol. 28, No. 8/2002, http://dx.doi.org/10.1108/03074350210767988.
Bauer P.W., Berger A.N., Ferrier G.D., Humphrey D.B., Consistency conditions for regu-latory analysis of financial institutions: A comparison of frontier efficiency meth-ods, “Journal of Economics and Business”, Vol. 50/1998, http://dx.doi.org/10.1016/s0148-6195(97)00072-6. p. 85–114.
Bhayani S., Performance of the New Indian Private Banks — A Comparative Study, “Journal of Management Research”, Vol. 5, No. 11/2006.
Bos J.W.B., Schiedel H., Comparing Efficiency in European Banking, a Meta Frontier Approach, “De Nederlandsche Bank Research Paper”, No. 57/2003, http://dx.doi.org/10.2139/ssrn.460060.
Boyd J.H., De Nicolò G., The Theory of Bank Risk Taking and Competition Revisited, “Journal of Finance”, Vol. 60, No. 3/2005, http://dx.doi.org/10.1111/j.1540-6261.2005.00763.x.
Casu B., Girardone C., A Comparative Study of the Cost Efficiency of Italian Banking Conglomerates, “Managerial Finance”, Vol. 28, No. 9/2002, http://dx.doi.org/10.1108/03074350210768031.
Cole R.A., Gunther J., Predicting Bank Failures, A Comparison of On-And Off-Site Monitoring Systems, “Journal of Financial Services Research”, Vol. 13, No. 2/1998, http://dx.doi.org/10.1023/A:1007954718966.
Cox D., Cox M., The Mathematics of Banking and Finance, Chichester 2006, http://dx.doi.org/10.1002/9781119205920.
Demirgüç-Kunt A., Laeven L., Levine R., Regulations, Market Structure, Institutions, and the Cost of Financial Intermediation, “Journal of Money, Credit, and Bank-ing”, Vol. 36, No. 3b/2004, http://dx.doi.org/10.1353/mcb.2004.0045.
Derviz A., Podpiera J., Predicting Bank CAMEL and S&P Ratings: The Case of the Czech Republic, “Emerging Markets, Finance and Trade”, Vol. 44, No. 1/2008, http://dx.doi.org/10.2753/ree1540-496x440107.
Doumpos M., Zopounidis C., A multicriteria decision support system for bank rating, “Decision Support Systems”, Vol. 50, No. 2010, pp. 55–63, http://dx.doi.org/10.1016/j.dss.2010.07.002.
Goldsmith R.W., Financial Structure and Development, Yale University Press, New Haven, 1969.
Greenbaum S.I., Thakor A.V., Contemporary financial intermediation, Elsevier, Lon-don 2007.
Gupta R., A CAMEL Model Analysis of Private Sector Banks in India, “Journal of Gyan Management”, Vol. 2, No. 1/2008.
Hollo D., M. Nagy, Bank Efficiency in the Enlarged European Union, BIS Working Papers, No. 28/2006.
International Monetary Fund, IMF eLibrary Data, http://data.imf.org (02.09.2015).
Kabir A., Dey S., Performance Analysis through CAMEL Rating: A Comparative Study of Selected Private Commercial Banks in Bangladesh, “Journal of Politics and Governance”, Vol. 1, No. 2/3/2012.
King R.G, Levine R., Finance and growth: Schumpeter might be right, “Quarterly Jour-nal of Economics”, Vol. 108, No. 3, http://dx.doi.org/10.2307/2118406.
Klyvienė V., Tranberg Rasmussen L., Causes of financial Crisis: The Case of Latvia, “Ekonomika”, Vol. 89, No. 2/2010.
Lucas R.E., On the mechanics of economic development, “Journal of Monetary Eco-nomics”, Vol. 22, No. 1/1988, http://dx.doi.org/10.1016/0304-3932(88)90168-7.
Mensi S., Zouari A., Efficient Structure versus Market Power: Theories and Empirical Evidence, “International Journal of Economics and Finance”, Vol. 2, No. 4/2010, http://dx.doi.org/10.5539/ijef.v2n4p151.
Mishra S.K., Aspal P.K., A Camel Model Analysis of State Bank Group, “World Journal of Social Sciences”, Vol. 3, No. 4/2013, http://dx.doi.org/10.2139/ssrn.2177081.
Padoa-Schioppa T., Reflections on recent financial incidents, Speech given at the Third Joint Central Bank Research Conference on Risk Measurement and System-ic Risk, Basel, 8 March 2002.
Prasad K.V.N, Ravinder G., A Camel Model Analysis of Nationalized Banks in India, “International Journal of Trade and Commerce”, Vol. 1, No. 1/2012.
Prasuna D.G., Performance Snapshot 2003–04, “Chartered Financial Analyst”, Vol. 10, No. 11/2004.
Robinson J., The generalization of the general theory. In The Rate of Interest and Oth-er Essays, MacMillan, London 1952.
Roman A., Sargu A., Analyzing the Financial Soundness of the Commercial Banks in Romania: An Approach Based on the Camels Framework, “Procedia Economics and Finance”, Vol. 6/2013, http://dx.doi.org/10.1016/s2212-5671(13)00192-5.
Said M-J. B., Saucier P., Liquidity, Solvency, and Efficiency: An Empirical Analysis of the Japanese Bank’s Distress, University of Birmingham 20th Symposium on Bank-ing and Monetary Economics, 2003.
Sarker A., CAMEL Rating System in the Context of Islamic Banking: A Proposed “S” for Shariah Framework, “Journal of Islamic Economics and Finance”, Vol. 1, No.1/2005.
Schumpeter J.A., The Theory of Economic Development, Harvard University Press, Cambridge 1934.
Sharma M.K., Bal H.K., Bank Market Concentration: A Case Study of India, “Interna-tional Review of Business Research Papers”, Vol. 6, No. 6/2010.
Siva S., Natarajan P., CAMEL Rating Scanning (CRS) of SBI Groups, “Journal of Banking Financial Services and Insurance Research”, Vol. 1, No. 7/2011.
Trichet J.C., Introductory Remarks, [in:] Independence and Accountability Develop-ments in Central Banking, Bank of France 2000.
Weber A., Financial Market Stability, speech delivered at the London School of Eco-nomics, 2008, http://www.bis.org/review/r080610a.pdf (22.04.2016).
Downloads
Published
How to Cite
Issue
Section
Stats
Number of views and downloads: 576
Number of citations: 0
