Article,

A STUDY ON THE FINANCIAL PERFORMANCE OF FOREIGN COMMERCIAL BANKS IN SRI LANKA: AN APPLICATION OF CAMEL RATING SYSTEM

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Economics, Commerce and Trade Management: An International Journal (ECTIJ), 1 (1): 01-12 (2017)

Abstract

Banks serve as backbone to the financial sector, which facilitate the proper utilization of financial resources of a country. The banking sector is increasingly growing and it has witnessed a huge flow of investment. The banking sector of developing countries is different from the developed countries in term of performance. The banking sector, especially commercial banks of Sri Lanka plays a vital role in the Sri Lankan economy. The focus of this study was to investigate the financial performance of foreign commercial banks in Sri Lanka. Many studies are conducted in different countries to study the financial performance of banking sector using the various statistical methods. In this study, the CAMEL rating system is used to study the financial performance of foreign commercial banks in Sri Lanka. The study selects three foreign banks for the analysis. Data was collected for the time period of 2008-2014. According to the findings foreign sector banks are good in the performance of capital adequacy and earnings while other variables show an average performance.

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