Baltes Nicolae

“Lucian Blaga” University

Romania

baltes_n@yahoo.com

Study regarding the financial stability of commercial banks listed on Bucharest Stock Exchange of CAMELS rating outlook

Rodean (Cozma) Maria-Daciana

“Lucian Blaga” University

Romania

maria.daciana89@yahoo.com

ABSTRACT.  The study’s propose is a theoretical and pragmatic approach of the CAMELS rating as of financial stability analysis tool of commercial banks listed on BSE. The analysis made on the financial statements of the four commercial banks listed on Bu- charest Stock Exchange during three financial years showed that the credit risk is their point of vulnerability, having a negative influence on the indicators, that are taken into account in the CAMELS model proposed. The calculation and the analysis of Basel III Agreement indicators are proposed in order to have an attentive monitor of the bank activity revealed that the four credit institutions listed on BSE are not yet fully prepared to implement the requirements of the agreement.

Received: June, 2014

1st Revision: September, 2014

Accepted: October, 2014

DOI: 10.14254/2071-8330.2014/7-3/12

JEL Classification: G2, E5

Keywords: CAMEL, financial stability, profitability, capital adequacy, risk sensitivity.