IDEAS home Printed from
   My bibliography  Save this article

Camels+t approach for banks’ assessment: evidence from the Baltics


  • Daiva JureviÄ ienÄ—

    () (Vilnius Gediminas Technical University, Lithuania)

  • Viktorija Skvarciany

    () (Vilnius Gediminas Technical University, Lithuania)


The findings of the research contribute towards commercial banks’ soundness assessment. The current study focuses on the importance of customers’ trust for banks’ soundness and the expanded CAMELS+T model was suggested where “T†stands for customer trust. For testing CAMELS+T model expert evaluation method was used Pairwise comparison method was used for factors’ ranking. The outcomes of the experts’ pairwise comparison were generated using analytic hierarchy process (AHP) based on classical and balanced scales and fuzzy analytic hierarchy process (FAHP) technique. The model was tested in the Baltic countries. Three forms of banking were analysed: traditional banking, internet banking and mobile banking in the current research. The results of the study showed that customer trust is one of the vital factors positively influencing the soundness of commercial banks. Therefore, the results contribute to the studies relating bank performance, as it confirms that trust is a powerful tool in commercial banks’ soundness building process. The results of the research are useful for commercial banks’ soundness’ assessment as soundness is considered the factor that is necessary not only for customer retention but also for customer acquisition. The findings have implications on the development of the strategy and the policy of commercial banks. Moreover, the results are valuable for investors as the soundness of commercial bank is the criterion investors should take into consideration while choosing a bank they are going to work with.

Suggested Citation

  • Daiva JureviÄ ienÄ— & Viktorija Skvarciany, 2016. "Camels+t approach for banks’ assessment: evidence from the Baltics," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 4(2), pages 159-173, December.
  • Handle: RePEc:ssi:jouesi:v:4:y:2016:i:2:p:159-173
    DOI: 10.9770/jesi.2016.4.2(4)

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Dima, Bogdan & Dincă, Marius Sorin & Spulbăr, Cristi, 2014. "Financial nexus: Efficiency and soundness in banking and capital markets," Journal of International Money and Finance, Elsevier, vol. 47(C), pages 100-124.
    Full references (including those not matched with items on IDEAS)

    More about this item


    trust; soundness; traditional; internet; mobile banking; CAMELS+T model; analytic hierarchy process (AHP); fuzzy analytic hierarchy process (AHP);

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:4:y:2016:i:2:p:159-173. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manuela Tvaronaviciene). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.