The IUP Journal of Accounting Research and Audit Practices:
Analyzing the Financial Soundness of Bank Dhofar: A CAMEL Approach

Article Details
Pub. Date : Oct, 2019
Product Name : The IUP Journal of Accounting Research and Audit Practices
Product Type : Article
Product Code : IJARAP31910
Author Name : Shariq Mohammed, Nadia Sha and Jayda Said Mohammed Al Aamri
Availability : YES
Subject/Domain : Finance
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No. of Pages : 10

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Abstract

The banking system is the backbone of any country. The present paper is based on CAMEL rating which was developed in the US in the year 1970 to classify the overall banking conditions, and now it is implemented by most of the banking supervisory regulators. The CAMEL rating studies the Capital Adequacy, Asset Quality, Management Quality, Earnings Ability, and Liquidity in terms of soundness. This paper is a case study of Bank Dhofar in the Sultanate of Oman. The CAMEL analysis has been used to analyze the data from 2010 to 2017. The data was collected from the Muscat Securities Market. It can be concluded that the bank’s capital adequacy requires some improvement. The bank must also increase its intake of government security. Further, Net NPA is showing a decreasing trend, therefore this is a good indication for the banks.


Description

Financial soundness is one of the key factors in the efficiency of any financial organization. Banks are one of the most important pillars in the economic development of any country. Banks are the link between the savers and users of the capital that is deposited with the banks. There are two types of banks which are working in Oman, i.e., conventional banks and Islamic banks. The Islamic banks started functioning recently in the Sultanate of Oman. The working of the Islamic banks started with a Special Act known as the Islamic Banking Regulatory Framework which was issued on December 18, 2012.


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ISBN: 978-81-314-2793-4
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