Select 3 COMMERCIAL Islamic banks and 3 COMMERCIAL conventional banks from the list of the countries allocated below and run CAMELS analysis. Collect data from secondary sources; compare ratios inter-banks from 2010 to 2016 on a yearly basis.

CAMELS analysis is,

In 1988, the Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) proposed the CAMEL framework for assessing financial institutions, based on the evaluation of five critical elements of a financial institutions operations: Capital adequacy, Asset quality, Management soundness, Earnings and profitability, and Liquidity. In 1997, it included the sixth component, Sensitivity to market risk, to form the CAMELS1 framework (Gilbert et al., 2000). Under the CAMELS framework, financial institutions are required to enhance capital adequacy, strengthen asset quality, improve management, increase earnings, maintain liquidity, and reduce sensitivity to various financial risks. (Dash And Das; 2013, p.1).

Report should consist of the following,

Introduction (brief. 2-3 pages).

Background on recent work on CAMELS

Literature review (2-3 pages)

Summarize 5 recent articles about CAMELS analysis

Data collection and calculation (2-3 pages)

Where did you get the data from? Software used to run the analysis

How was the calculation done for each ratio?

Problems encountered while collecting data.

Results and analysis (4-6 pages)

Descriptive statistics. (Mean, Median, standard deviation, minimum and maximum )

Graphs (each ratio across time)

Correlations ( within the same bank)

Discussion

Conclusion

References

Countries

Algeria (group 1)

Jordan (group 2)

Morocco (group 3)

Lebanon (group 4)

Malaysia (group 5)

Indonesia (group 6)

Soft copy of the data used must be submitted together with the report.

The report should be submitted as a hard copy as well as a soft copy through Black Board.