Abstract

Financial Reporting Quality (FRQ) as a Determinant of Bank Resilience Based on the CAMELS Model: An Applied Study in the Iraqi Union Bank

Ahmed Taher Kadhim Al-Anbagi

Volume: 15 Issue: 4 2025

Abstract:

This research aims to evaluate the quality of financial reports issued by local companies (using Union Bank as a case study) using the CAMELS model. This model assesses bank performance and serves as a monitoring tool through the use of several indicators. This study is unique in linking the CAMELS model to the quality of financial reports in the Iraqi context. To achieve the research objective, Union Bank's financial statements (balance sheet and income statement) for the years 2021-2024 were used, and CAMELS model indicators were applied. The relationship between the quality of financial reports and the model was then determined through accurate disclosure of capital, asset valuation, loan provisions, expense recognition, internal controls, profit transparency, and liquidity reporting. The research reached several conclusions, the most important of which is that Union Bank's CAMELS indicators for the period 2021-2024 demonstrate strong capital and liquidity adequacy, supported by improved management efficiency. However, the quality of earnings remains modest, indicating limited sustainability of profitability. The reliability of these indicators depends largely on the quality of financial reporting, as transparent reporting that complies with International Financial Reporting Standards enhances the accuracy of CAMELS assessments of the bank’s strength and performance.

DOI: http://doi.org/10.37648/ijrssh.v15i04.003

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