Analysis of selected five banks with the use of the CAMEL model

Abstract

This study is providing a general analysis of five Polish banks that are quoted on Warsaw Stock Exchange in its WIG20 index. The analysis is based on the framework created by CAMEL model, which is used worldwide in assessing bank’s performance and risks they are exposed to. CAMEL model, however, will not be fully applied, as not all information needed for full application is freely available. Still, the same tools will be used and all areas of banks operations that are covered by CAMEL model will be analyzed. To better understand the situation of selected five banks it could be helpful to look at the whole market of commercial banks in Poland. Information necessary can be found in chapter “Banking Sector in Poland”. Chapter “The Model Overview” provides a description of the CAMEL model and tools that are used in the study. Practical analysis of selected five banks is available in the “Practical Comparison Based on CAMEL Model Framework” chapter. It describes step by step calculations made and presents final observations.