This study aims to recognize the determinants of capital adequacy in
Syrian private banks listed in Damascus stock exchange. Through
review of main theoretical and empirical research, six factors were
chosen such as: credit risk, interest rate ris
k, liquidity risk, leverage
risk, bank size and profitability. Analysis of data which was
extracted from financial semi- annual reports of these banks was
performed using multiple linear regression. The results showed
inverse correlation between credit risk, interest rate risk and capital
adequacy ratio. This study also confirms positive relationship
between leverage risk and capital adequacy ratio. On the other hand,
the size of the bank and its profitability does not seem to have
essential role in determining capital adequacy ratio in Syrian private
banks.
