Journal of Applied Finance & Banking

Performance Evaluation of The Sierra Leone Banking Sector Using Camel Rating Framework

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  • Abstract

     

    This study aims to evaluate the performance of the Sierra Leone banking sector using Camel rating framework. The study adopts a descriptive research design in which the Least Square regression method is used. The study covers the period from 2012 to 2021 inclusive. The variables considered for this study include capital adequacy, asset quality, earnings ability of the banks and liquidity management within the banking sector. From the findings of the study; all the variables used have positive relationships or coefficients except Asset Quality and Liquidity Management, which has a negative coefficient of-0.007021 and -0.03513 but these relationships are insignificant to banks’ performance in Sierra Leone. The findings from the study also indicate that Capital Adequacy and Earning Ability are having positive and significant effect on bank`s performance in Sierra Leone.

     

    Keywords: Profitability, Non-performing loans, Camels Framework.