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:: Volume 25, Number 82 (quartery journal of Economic Research and Policies 2017) ::
3 2017, 25(82): 43-78 Back to browse issues page
A Model to Evaluate and Predict the Financial Soundness of selected Banks in Iran: Using CAMELS Rating System
Seyed Mehdi Ramezani *, Mohammad khorashadizadeh
, rsayedmehdi@yahoo.com
Abstract:   (184 Views)

Financial soundness of Iranian banks has not been comprehensively assessed and predicted yet, and most of the studies are related to predicting the bankruptcy of the listed companies in Tehran Stock Exchange. This research aims to investigate 17 financial ratios as the indicator of financial Safety and soundness of the banks in Iran with using CAMELS rating system in order to offer a model for the assessment and prediction of bank soundness. In this regard, we study the audited financial statements of 20 state and private banks for the period of 2009 to 2013. We test all the seventeen financial ratios in the panel data regression and stepwise method as independent variables and estimate their effects on banks Soundness. The results indicate that explanation power of the six ratios is 75.2% for bank's soundness. Also, Practical measures of the designed model show that prediction accuracy of the model is 70%.
 
 

Keywords: Safety and soundness of the bank, banking supervision, CAMELS rating system, prediction of banking soundness.  
Full-Text [PDF 1130 kb]   (79 Downloads)    
Type of Study: Research | Subject: Special
Received: 2016/02/12 | Accepted: 2017/09/10 | Published: 2017/09/10
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Ramezani S M, khorashadizadeh M. A Model to Evaluate and Predict the Financial Soundness of selected Banks in Iran: Using CAMELS Rating System . 3. 2017; 25 (82) :43-78
URL: http://qjerp.ir/article-1-1388-en.html
Volume 25, Number 82 (quartery journal of Economic Research and Policies 2017) Back to browse issues page
فصلنامه پژوهشها و سیاستهای اقتصادی Journal of Economic Research and Policies
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