Bank Performance

Bank Ratings in Emerging Asia - Methodology, Information and Technology (EAGLES vs CAMEL)

The CAMEL and EAGLES analysis are now written in greater detail.

Reference:
Vong, J. (et al.) (2015). Bank Ratings in Emerging Asia - Methodology, Information and Technology in Emerging Technologies for Emerging Markets, Springer New York, pg 25 - 35.

(http://www.amazon.com/Emerging-Technologies-Intelligent-Engineering-Info...)

ABSTRACT

What fundamental changes can be expected from Banks?

Dear Readers

Many readers have asked whether there are any recent research articles based on EAGLES and SRQ. The straight answer is there are none.
The reasons are:

  1. We need to plan carefully how, where and when we present our research.
    The banking sector in every nation is a powerful lobby group.
    (My travel visa was nearly revoked twice in 2 countries for presenting research papers on the macroview on weakness of the banking sector. No bank names were disclosed. Many central banks do not wish to hear external researchers telling them the bad news).

Why CAMEL failed to recognize the weakness of banks?

Many analysts or bank inspectors use the CAMEL for analyzing banks and not knowing the disadvantages of the model. Here is an expose of the potential loopholes and where the EAGLES benchmark may excel.

Demise of CAMEL?

In the CAMEL, analysts assess five key aspects of the operations of a financial institution – Capital, Assets, Management, Earnings and Liquidity – rating them on a scale of 1 to 5. An overall rating of 1 is best while a rating of 5 implies a bank being laden with existing or potential problems.

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