Palestinian Banks Analysis Using CAMEL Model


  • Khaled A. Zedan An-Najah National University
  • Gassan Daas An-NAjah National University


This study attempts to evaluate the performance and financial soundness of Palestinian commercial banks for the year 2015 using CAMEL rating model. The CAMEL model provides a means to categorized bank based on the overall health, financial status, and managerial operation. Banks were sustained rating based on the performance in five areas: capital adequacy, asset quality, management efficiency, earning quality, and liquidity. We applied capital adequacy ratio (CAR) to analyze capital adequacy parameter, non performing loans to total loans (NPL) to analyze of assets quality parameter, non expense ratio (NER) for analyzing management quality parameter, return on assets (ROA) and return on equity (ROE) to analyze earnings ability and total loans to total deposits ratio (LDR) to analyze liquidity management

Keywords: CAMEL approach; financial institutions; Palestine

JEL Classifications: G20; G21


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Author Biographies

Khaled A. Zedan, An-Najah National University

Asistant Professor of BusinessDepartment of Finance and |Banking

Gassan Daas, An-NAjah National University

Assistant Professor of Accounting


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How to Cite

Zedan, K. A., & Daas, G. (2017). Palestinian Banks Analysis Using CAMEL Model. International Journal of Economics and Financial Issues, 7(1), 351–357. Retrieved from