A Study on Financial Performance of Private and Public Banks in Afghanistan (2014–2017)

Banks are major players in financial sector and economy as a whole. Banks are creators of credit and mobilizers of savings which fuel investments and helps economy running. If banks are sick and are not performing well, then the whole economy would face challenges that might have great negative outcomes. In this paper we have tried to analyze financial performance of public and private sector banks in Afghanistan. This study is based on CAMEL approach which is a popular quantitative technique for financial performance analysis of banks base on different financial parameters. In this study the data for 4 years (2014–2017) has been evaluated and it has been found that almost base on all CAMEL parameters, private sector banks on average are performing far better than public sector banks. This study can be helpful for policy makers in government and also for banks to meet their shortcomings and improve their financial performance to meet the standards and requirements.