The relationship between the modified CAMEL methodology and bank profitability Case Study: Pasargad Bank

This paper aims to study the relationship between the modified CAMEL methodology and profitability in Pasargad Bank. The data used for the study includes all the transactions of the bank between 2005 and 2011. The hypotheses examine the impact of the modified CAMEL factors on profitability in Pasargad Bank. The results indicate that these factors do impact profitability to various extents, however. Furthermore, with the Durbin-Watson statistic equal to 1.92 and R-squared equal to 0.94, among other statistics, we prove the adequate fit of the modified methodology.