SPECIFICS OF USING THE CAMELS ESTIMATION METHOD FOR CALCULATING THE INVESTMENT ATTRACTIVENESS OF A COMMERCIAL BANK ON THE EXAMPLE OF VTB BANK PJSC

Abstract

This paper examines the CAMELS rating system, which is currently used by Central Banks in developed countries. In our country, it is adaptedfor calculating the investment attractiveness of commercial banks. Thus, the calculation of the investment attractiveness of a commercial Bank should include methods developed By Central banks in developed countries, and take into account the specifics of commercial banks ' activities in order to better understand the investment potential. The authors believe that a comprehensive assessment of the Bank's investment potential is not effective, since it does not reflect the Bank's potential, and a discrete assessment shows both the Bank's strengths and its vulnerabilities. So, the authors proposed improvements to the methodology, which covers all the most important indicators of financial stability. In this study, the modified methodology was used for investment analysis of VTB Bank PJSC.

Keywords

• investment analysis
• investment attractiveness
• camels valuation method
• cost of equity
• risk index