Evaluating the financial performance of commercial banks in Iraq under the Corona pandemic using the CAMELS criterion

Abstract

Due to environmental factors such as the Corona pandemic and capital adequacy and liquidity requirements, the financial performance of commercial banks has been poor. Researchers and policymakers are required to focus on this phenomenon. Consequently, this article examines the effect of CAMELS criteria such as capital adequacy, asset quality, management, earnings, liquidity, and sensitivity on the return on equity in Iraqi commercial banks. Using twenty commercial bank databases, the study compiled secondary data from 2011 to 2020. The Moments-Quantile-Regression (MMQR) methods were also used to investigate the relationship between variables. Capital sufficiency, asset quality, management, earnings, liquidity, and sensitivity correlate positively with return on equity in Iraqi commercial banks. Using the CAMELS criterion, the study guides regulators in developing bank profitability regulations during and after the Corona pandemic.