Impact of Camel Rating On the Financial Performance of the Banking System of Pakistan – A Comparative Study (Conventional and Islamic Banks of Pakistan)

Abstract

The banking industry fits a significant job in its monetary turn of events and flourishing of the nation. Banking industry fills in as the foundation of the money related segment that collects sparing from surplus financial units as stores and gives it to deficiency monetary units as advances. It is critical to distinctly watch the presentation of the banks and their consistence with the administrative prerequisites. CAMELS is the administrative and administrative rating framework executed by State Bank of Pakistan. It considers six significant segments of a bank when it assesses execution of the bank. The study based on post positivism paradigm on Capital, Assets, Management, Earning, and Liquidity for 5 conventual banking and 5 Islamic banking system of Pakistan. The cross section of the study remains between 2015 – 2019. This study will be a hallmark for the banking industry of Pakistan as it will explore the theory that the CAMEL variables have any significant impact on the financial performance of the banks in Pakistan or not. The results of the study can be utilized to foresee the present and future state of the banking industry and to bring about a revolutionary change accordingly