CAMEL Model: A Comparative Case Study of Financial Performance for Public and Private Banks in Libya

Abstract

The aim of this study is to compare the financial performance of public and private commercial banks in Libya, based on the CAMEL banking safety model through its financial indicators (capital adequacy, asset quality, management efficiency, profitability, liquidity), and the study was conducted on a sample represented by two banks (and Jomhouria Bank & Commerce and Development Bank) during the period (2009-2017). The descriptive analytical approach was used in the framework of comparison of the model indicators for the two banks, and the study reached results that reflect the financial strength of the sample, as it became clear to us the performance of the Bank of Commerce Development better than the Bank of the Jomhouria Bank in banking safety indicators. It received a satisfactory rating (2), compared to the Jomhouria Bank, whose rating was (3). In addition, there are differences in the average performance indicators (capital adequacy, asset quality, management efficiency) between the Jomhouria Bank and the Commerce and Development Bank according to the CAMEL model classification, However, there are no differences in the average performance indicators (profitability, liquidity) between the Jomhouria Bank and the TradCommerce and Development Bank according to the CAMEL model classification