Prediction of Financial Failure and Economic Continuity Using the CAMELS Standard and Time Series: An Analytical Approach
DOI:
https://doi.org/10.31272/jae.i147.1386Keywords:
Financial Failure, Continuity, Camels Standard, Time SeriesAbstract
The study aimed to investigate the prediction of financial failure (FF) and evaluate the performance and classification of banks to provide an early warning system for future financial failure. The study relied on time series (TS) and the Camel criterion to predict financial failure, which relies on a set of traditional indicators. The sample includes eight Iraqi banks listed on the Iraq Stock Exchange for 2010-2020. The results indicated that financial indicators help auditors assess the continuity of banks, and the results of indicators (financial and operational) indicate uncertainty about banks by determining their ability to continue. The study provides evidence of the importance of auditors adopting early warning methods for bank failure. The significance of the study comes from the importance of the Iraqi banking sector and its central role in Iraq. The study highlights many obstacles and problems that lead to failure and the inability of banks to continue.
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