Comparative Analysis of Commercial and Cooperative Banks in TRNC Banking Sector Using CAMELS Rating System

Although significant CAMELS performance analysis has been done before in the worldwide literature, a comparative analysis between commercial banks and cooperative banks which is covering the TRNC banking sector has not been made yet. Therefore, this study aims to fulfil this gap in the existing academic literature and lead other upcoming studies would be made at the same scope. In this study, private banks and cooperative banks in the TRNC banking sector will be compared with the help of the CAMELS rating system. The data of 11 commercial banks and 3 cooperative banks were used in the analysis between 2014 and 2019. According to the data obtained in the study, Turkish Bank showed the best performance among the 14 banks covered in the study, while Universal Bank showed the worst performance. Apart from this, the top five banks with the best performance are Turk Bank, Albank, ME-KOOP, Creditwest Bank, and OYAK, respectively. Additionally, it was noteworthy that the performances of Capital Bank and Asbank were also positive. It would be correct to interpret that, these seven banks have improved themselves and performed well compared to previous years. On the other hand, banks with scores below zero are interpreted as having low performance. Banks that perform below zero are Akfinans Bank, Seker Bank, Nova Bank, Near East Bank, Iktisat Bank, DAU-KOOP, and Universal Bank, respectively, from largest to smallest. Although the research sample of cooperative banks is constricted, it is seen that there are two cooperative banks among the top five banks with the best performance, considering the six years discussed.