9. Wang Kai

Comparative Analysis of Major Chinese, European, and American Transnational Banks According to the CAMEL System

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Wang Kai

Postgraduate Student of St. Petersburg State University оf Economics, Doctor of Economics, Professor

Sadovaya Str. 21, St. Petersburg, Russian Federation, 191023

The present study performs a comprehensive analysis of the economic performance of four transnational banks (two Chinese banks, one European, and one American bank) in 2014–2016 according to the CAMEL rating system.
Aim. The study aims to provide recommendations for the development of Chinese commercial banks in the context of financial globalization.
Tasks. The authors identify differences between Chinese, European, and American commercial banks in terms of capital adequacy, asset quality, management quality, profitability, and liquidity, and provide recommendations for the development of Chinese commercial banks.
Methods. This study uses a comparative approach, financial analysis, and the CAMEL rating system to assess commercial banks.
Results. The reliability and stability of transnational banks are assessed using the CAMEL rating system; the readiness of transnational banks for financial globalization is evaluated; recommendations for enhancing the competitiveness of Chinese commercial banks in the context of internationalization of the banking market are provided.
Conclusion. As a result of the performed analysis and comparison of capital adequacy, asset quality, management quality, profitability, and liquidity, conclusions are drawn, recommendations for the development of Chinese commercial banks are provided, and ways of enhancing the internationalization of Chinese banks are determined.

Keywords:CAMEL rating system, capital adequacy ratio, non-performing loan (NPL), return on equity (ROE), competitiveness

Citation:Wang Kai. Sravnitel’nyy analiz krupneyshikh kitayskikh, evropeyskikh i amerikanskikh transnatsional’nykh bankov na base sistemy CAMEl [Comparative Analysis of Major Chinese, European, and American Transnational Banks According to the CAMEL System]. Ekonomika i Upravlenie, 2018, no. 6 (152), pp. 66–70.

References

  1. Annual Reports of the Industrial and Commercial Bank of China for 2014–2016. Available at: http://ww.icbc-ltd.com/. Accessed 10.05.2018.
  2. Bank of China Annual Reports for 2014–2016. Available at: http://www.boc.cn/. Accessed 10.05.2018.
  3. Citibank China Annual Reports for 2014–2016. Available at: http://www.citibank.com.cn/. Accessed 10.05.2018.
  4. HSBC Bank Annual Reports for 2014–2016. Available at: http://www.hsbc.com.cn/ Accessed 10.05.2018.
  5. Selishchev A. S., Selishchev N. A., Selishchev A. A. Finansovyye rynki i instituty Kitaya [Financial markets and institutions in China]. Moscow: Infra-M Publ., 2016. 258 p.

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