Ranking Iranian Private Banks Based on the CAMELS Model Using the AHP Hybrid Approach and TOPSIS

Abstract

This research was done to evaluate and compare performance of Iranian banks based on the CAMELS rating system. For this purpose, after studying the related literature, factors relating to efficiency and soundness were identified and used to assess banks; these were Capital Adequacy, Asset Quality, Management Capability, Earnings, Liquidity, and Sensitivity to Market Risk. Then, an importance coefficient was determined for each of these factors using the Analytical Hierarchy Process. Iranian private banks were then ranked according to evaluations on indices from audited financial statements at the end of the Solar year 1393 (March 2015) and the TOPSIS method. Results determined high-ranking banks as follows: Pasargad Bank, Khavarmiane, Karafarin, Sina and Ansar.

Authors and Affiliations

Shiva Ghasempour, Mohamadjavad Salami

Keywords

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  • EP ID EP123376
  • DOI 10.6007/IJARAFMS/v6-i4/2294
  • Views 109
  • Downloads 0

How To Cite

Shiva Ghasempour, Mohamadjavad Salami (2016). Ranking Iranian Private Banks Based on the CAMELS Model Using the AHP Hybrid Approach and TOPSIS. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(4), 52-62. https://europub.co.uk/articles/-A-123376