Determinants of Bank Performance: The Application of the CAMEL Model to Banks Listed in China’s Stock Exchanges from 2008 to 2011
Main Article Content
Abstract
This study aims to examine the impact of independent variables from CAMEL model on bank performance in China’s banking sector. These independent variables from CAMEL model include: capital adequacy, asset quality, management, earning and liquidity. The sample size for this research was the 13 Chinese banks listed in Shanghai Stock Exchange and Shenzhen Stock Exchange from 2008 to 2011.The fixed effects multiple linear regression model was adopted in this study to measure the relationship between internal determinants from CAMEL model and bank performance. The findings of this research show that return on assets can be influenced by shareholders’ risk-weighted capital adequacy ratio, NPL to total loans ratio, costs to income ratio, net interest rate margins, and loans to deposits ratio. Meanwhile, this study indicates that return on equity can be influenced by costs to income ratio, operating expenses to assets ratio, and Loans to deposits ratio.
Downloads
Download data is not yet available.
Article Details
How to Cite
Liu, J., & Pariyaprasert, W. (2015). Determinants of Bank Performance: The Application of the CAMEL Model to Banks Listed in China’s Stock Exchanges from 2008 to 2011. AU-GSB E-JOURNAL, 7(2). Retrieved from http://www.assumptionjournal.au.edu/index.php/AU-GSB/article/view/1067
Section
Articles
This work is licensed under a Creative Commons Attribution 4.0 International License.
The submitting author warrants that the submission is original and that she/he is the author of the submission together with the named co-authors; to the extend the submission incorporates text passages, figures, data, or other material from the work of others, the submitting author has obtained any necessary permission.
Articles in this journal are published under the Creative Commons Attribution License (CC-BY What does this mean?). This is to get more legal certainty about what readers can do with published articles, and thus a wider dissemination and archiving, which in turn makes publishing with this journal more valuable for you, the authors.