Determinants of capital adequacy in Syrian private banks Empirical study


Abstract in English

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 risk, 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.

References used

Allen F. et Santomero A.M. (1997). The Theory of Financial Intermediation. Journal of Banking and Finance, Vol 21, pp. 1461- 1485
Almajali, A. Y.; Alamro, S. A. and Al-Soub, Y. Z. (2012). Factors affecting the financial performance of Jordanian insurance companies listed at Amman stock exchange. Journal of Management Research. Vol.4, pp.266-289
Al-Tamini, K. A. and Obeidat, S. F. (2013). Determinants of Capital Adequacy in Commercial Banks of Jordan: An Empirical Study. International Journal of Academic Research in Economics and Management Science. Vol. 2, No.4. pp. 44- 58

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