Camels performance analysis of deposit banks in Turkey

Banks are the fundamental establishments of a finance system in a country. They have a great importance, working of a country economy substantially with their tasks. Consequently it is obvious that in this sector negations bring great problems to both finance sector and country economy. So especially bank examinations have a great importance. Many countries have improved different systems for controlling and observing the banking establishments.In this study for computing Performance Index of grading banking sector in Turkey, rates which are chosen about identified key criterion CAMELS analyze are used. Instead of using CAMELS Rating System traditional method between 1-5 rating, primarily selected rates are changed to index in their component, thereinafter composite index is calculated with taking weighted averages of these indexes. Performance evaluating of between 2005-2008 years term is performed both general of grading banks and groups with helping of each CAMELS component for computing composite indexes. In this study for choosing 2005-2008 terms as an analyze period, after 2001 economic crisis performing of which has started banking sector reconstructive program, has finished in 2005 is determinative for this case. Consequently in this study with CAMELS performance index of public, private, domestic and foreign capital banks, it is evaluated in these indexes whether there are differencies after reconstruction process. As a result this approach which is founded the basements of CAMELS Rating system as a name of Banking Sector Performance Index, it is thought that could explain general grading banking sector and development of each bank group and could be used by all establishments for early warning.Keywords: Banking, CAMELS, Performance Index