The safety of banks in Vietnam using CAMEL

Do Thi Thanh Nhan, Kim Hung Pho, Dang Thi van Anh, Michael McAleer*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

9 Citations (Scopus)

Abstract

A key, important, and popular set of criteria to evaluate the safety, stability, and sustainability of banks is the CAMEL method. The CAMEL system is an abbreviation for indicators that consists of a ranking system for a bank, and includes 5 chief ingredients, namely Capital Adequacy, Asset Quality, Management Quality, Earnings, and Liquidity. Banks need to comply with the CAMEL system in order to facilitate the bank to operate sustainably, safely, and grow larger and stronger. The primary interest in the paper is to analyze the safety, stability, and sustainability of banks in Vietnam. Based on financial statements, data are collected from banks in Vietnam from 2014 to 2017, and the CAMEL method is used to investigate the safety, profitability, liquidity, and risk management of these banks. The data were collected and stored according to banking regulations in Vietnam that have changed over time.

Original languageEnglish
JournalAdvances in Decision Sciences
Volume25
Issue number2
DOIs
Publication statusPublished - Jun 2021

Bibliographical note

JEL Classifiaction: F38, G21, G24, G33, O16
* The fourth author wishes to thank the Australian Research Council and the Ministry of Science and Technology (MOST), Taiwan.

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