Evaluating the Performance of Banks Using the PATROL Model: An Applied Comparative Study between Al-Tadamun Islamic Bank, Yemen and Kuwait for Trade and Investment for the Period 2015-2020

Abstract

     This study aims to assess the financial performance of Al-Tadamun Islamic Bank, Yemen and Kuwait Bank for Trade and Investment by using the Patrol Model (its name is derived from the first three letters of the Italian word PATrimonio, which means capital adequacy, and the first letter of both Redditivita and Rischiosita, which means profitability and credit risk, as well as the first letter of each of Organization, which means regulation and Liquidity, and thus called the PATROL model) during the period (2015-2020), which is one of the modern models for early warning, and using the weighting method, which means weighting the five components of the model (capital adequacy, profitability, liquidity, credit risk, regulation) with certain weights and according to their importance and the classification method in which the components of the model are classified from (1) which represents the best performance and (5) represents the worst performance. The study has found the importance of banks to assess their performance on an ongoing basis using the PATROL model to discover strengths and weaknesses in their performance.