camel framework for banks

1. INTRODUCTION Today banks have a key role in all countries. And their policies and strategies affect economic development, employment, prices, national income, etc. The operations of banks are known as one of the most important economic activity in the world. Any activity which requires investments and financial resources undoubtedly requires the involvement of banks and financial institutions. Thus banks have the central role in economy.
On the other hand, managing of a country's financial system requires a variety of ways that enable financial institutions to identifying of management problems to be responsible for protecting the citizens and the entire system because existing problems due to poor management of bank, threaten the entire financial system of a country. Achieving to the components of a strong and efficient banking system, achieving goals, efficient use of resources and operating efficiently have been considered for many years so it requires assessment of bank's performance. Evaluation of bank performance is very important for Bankers due to the need to protect the banking operations against continuous risks or due to gambling-incentives related to capital market. In addition, there are numerous studies on financial interventions and its effect on efficiency of economic growth and also other studies on bank failures and its relationship with systemic crisis which demonstrate the important of performance evaluation.
Today, the bank performance has become a favorite subject for many stakeholders such as customers, investors and the general public. There is a wide range of indicators of financial reports to evaluate financial performance. But the important criteria to determine the compatibility and health of a financial organization act as some mediators to measure profitability and liquidity of the organization. Among the various criteria; Basel Committee on Banking Supervision proposed the CAMEL component to investigate financial