Examining the effect of the pandemic on the financial performance of banks in Turkey with CAMELS analysis

Banks are one of the most important institutions of countries. Due to the duties they undertake, they are considered to be important for a country to operate financially in a healthy way. In other words, the problems that will arise with the banks may cause great problems for the country's economy. Therefore, the supervision of banks becomes important. Many countries in the world have developed different systems for the supervision and surveillance of banks. In the first part of this study, subjects such as banking, the historical development of banking in the world and in Turkey, types of banks according to their activities, the regulatory and supervisory institutions that Turkish banks are subject to, the effects of BRSA regulations and Basel criteria on the performance of banks in Turkey, performance measurement in the banking sector are discussed. given. In the second part of the study, the CAMELS performance analysis was mentioned in detail, and at the end, a literature review of the studies conducted with the CAMELS method was made. In the third part of the study, an empirical application was made. Being the 3rd largest in each group operating in the Turkish banking sector; CAMELS performance analysis was conducted to see the changes in the financial performance of state-owned deposit banks, foreign-owned banks and investment and development banks before and after the Covid-19 global pandemic, that is, according to 2018-2019 and 2020-2021. The determining factor in choosing the pre- and post-Covid-19 global pandemic as the analysis period in the study is to see the effect of the pandemic on the banking sector at a certain level. According to the results obtained by the Covid-19 global pandemic period CAMELS analysis, among the bank groups that were negatively examined, it affected the state-owned deposit banks the most, and the development and investment banks the least. Foreign-owned banks, on the other hand, improved compared to before and after the pandemic. Keywords: CAMELS Rating System, Banking, Performance Analysis, Covid-19 Global Pandemic.