CHAPTER 1

TABLE OF CONTENTS

CHAPTER # 1 INTRODUCTION 1.1 Overview 011.2 Significance of Study 051.3 Statement of problem 051.4 Research Objectives 05CHAPTER # 2 LITERATURE REVIEWLiterature Review 06CHAPTER # 3 METHODOLOGY3.1 Introduction 143.2 CAMELS Rating System 143.3 Variables 153.3.1 Independent Variables 15 3.3.2 Dependent Variables 163.3.2.1 Capital Adequacy 163.3.2.1.1 Capital Rating 1 173.3.2.1.2 Capital Rating 2 173.3.2.1.3 Capital Rating 3 183.3.2.1.4 Capital Rating 4 183.3.2.1.5 Capital Rating 5 183.3.2.2 Asset Quality 193.3.2.2.1 Assets management Rating 1 193.3.2.2.2 Assets management Rating 2 19 3.3.2.2.3 Assets management Rating 3 20 3.3.2.2.4 Assets management Rating 4 20 3.3.2.2.5 Assets management Rating 5 21 3.3.2.3 Management 21 3.3.2.3.1 Management rating 1 22 3.3.2.3.2 Management rating 2 22 3.3.2.3.3 Management rating 3 223.3.2.3.4 Management rating 4 23 3.3.2.3.5 Management rating 5 233.3.2.4 Earning 24 3.3.2.4.1 Earning rate 1 243.3.2.4.2 Earning rate 2 253.3.2.4.3 Earning rate 3 253.3.2.4.4 Earning rate 4 263.3.2.4.5 Earning rate 5 263.3.2.5 Liquidity 263.3.2.5.1 Liquidity rating 1 273.3.2.5.2 Liquidity rating 2 273.3.2.5.3 Liquidity rating 3 273.3.2.5.4 Liquidity rating 4 28 3.3.2.5.5 Liquidity rating 5 28 3.3.2.6 Sensitivity to Market Risk 29 3.4 Theoretical framework 30 3.5 Hypotheses Testing 313.6 Data source and sampling 31 CHAPTER # 4 ANALYSIS AND DISCUSSION4.1 CAMELS rating base 324.2 Capital Adequacy 334.3 Asset Quality 34 4.4 Management Soundness 354.5 Earning 37 4.6 Liquidity 394.7 Sensitivity to Market Risk 40CHAPTER # 5 CONCLUSION

5.1 Summary 43 5.2 Conclusion 44 5.3 Recommendations 45 5.4 Limitations 46 5.5 Further Study 46 References 48