International Academic Journal of Economics

  • ISSN 2454-2474

Ranking and Rating Lebanese Commercial Banks: A CAMELS Framework

El Khoury, Rim and Chantal Ghasb Salem

Abstract: The CAMELS model, by incorporating more than one ratio, is one of the most widely used framework for measuring bank performance. Thus, this paper will measure the efficiency of Lebanese banks, rank and rate them using CAMELS framework. Only the largest ten Lebanese banks are included covering the period from 2008 to 2012. The study finds that the CIFS rating used in Lebanon is not in conformance with the CAMELS rating, indicating the need to develop a more accurate model to rate the Lebanese banks. Second, bank ranking is not stable throughout the years. Third, none of the Lebanese banks received a rating of 5, indicating that their efficiency should be improved. Fourth, none of the banks had a positive score in all CAMELS aspects. The study highlighted the main strengths and weaknesses of each bank, suggesting areas to be enhanced should the bank improve its rating and ranking.

Keywords: Banks’ Ranking, Rating, CAMELS, Score, Lebanon

Page: 103-119

DOI: 10.9756/IAJE/V5I2/1810019

Volume 5, Issue 2, 2018