{"title":"银行业资本充足率的决定因素:来自阿拉伯地区的证据","authors":"Rami Obeid","doi":"10.5539/ijbm.v18n5p63","DOIUrl":null,"url":null,"abstract":"The capital adequacy ratio is one of the most important indicators used to assess the ability of the banking sector to absorb shocks. Therefore, central banks have paid attention to the importance of monitoring this ratio on an ongoing basis, given the vital role of the banking sector in supporting the economy. In this paper, we investigate the banking and economic factors that could affect the capital adequacy ratio in the Arab banking sector, by using dynamic panel data model for a panel of 35 banks spread across seven Arab countries during the period 2015 to 2020. \n \nThe results show that there is a positive and significant relationship between credit risk (ratio of non-performing loans to total loans) and the size of the bank on the one hand, and capital adequacy ratio on the other hand. There is also a negative significant relationship between bank profitability (return on assets) and capital adequacy ratio, while there is no significant relationship between dynamic provisions and capital adequacy ratio. Finally, regarding the role of economic variables, the study shows that the real GDP growth rate has a significant positive impact on the capital adequacy ratio in the Arab region.","PeriodicalId":38990,"journal":{"name":"International Journal of Business and Management Science","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2023-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":"{\"title\":\"Determinants of Capital Adequacy Ratio in the Banking Sector: Evidence from the Arab Region\",\"authors\":\"Rami Obeid\",\"doi\":\"10.5539/ijbm.v18n5p63\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"The capital adequacy ratio is one of the most important indicators used to assess the ability of the banking sector to absorb shocks. Therefore, central banks have paid attention to the importance of monitoring this ratio on an ongoing basis, given the vital role of the banking sector in supporting the economy. In this paper, we investigate the banking and economic factors that could affect the capital adequacy ratio in the Arab banking sector, by using dynamic panel data model for a panel of 35 banks spread across seven Arab countries during the period 2015 to 2020. \\n \\nThe results show that there is a positive and significant relationship between credit risk (ratio of non-performing loans to total loans) and the size of the bank on the one hand, and capital adequacy ratio on the other hand. There is also a negative significant relationship between bank profitability (return on assets) and capital adequacy ratio, while there is no significant relationship between dynamic provisions and capital adequacy ratio. Finally, regarding the role of economic variables, the study shows that the real GDP growth rate has a significant positive impact on the capital adequacy ratio in the Arab region.\",\"PeriodicalId\":38990,\"journal\":{\"name\":\"International Journal of Business and Management Science\",\"volume\":null,\"pages\":null},\"PeriodicalIF\":0.0000,\"publicationDate\":\"2023-07-30\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"1\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"International Journal of Business and Management Science\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.5539/ijbm.v18n5p63\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q4\",\"JCRName\":\"Business, Management and Accounting\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Business and Management Science","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.5539/ijbm.v18n5p63","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"Business, Management and Accounting","Score":null,"Total":0}
Determinants of Capital Adequacy Ratio in the Banking Sector: Evidence from the Arab Region
The capital adequacy ratio is one of the most important indicators used to assess the ability of the banking sector to absorb shocks. Therefore, central banks have paid attention to the importance of monitoring this ratio on an ongoing basis, given the vital role of the banking sector in supporting the economy. In this paper, we investigate the banking and economic factors that could affect the capital adequacy ratio in the Arab banking sector, by using dynamic panel data model for a panel of 35 banks spread across seven Arab countries during the period 2015 to 2020.
The results show that there is a positive and significant relationship between credit risk (ratio of non-performing loans to total loans) and the size of the bank on the one hand, and capital adequacy ratio on the other hand. There is also a negative significant relationship between bank profitability (return on assets) and capital adequacy ratio, while there is no significant relationship between dynamic provisions and capital adequacy ratio. Finally, regarding the role of economic variables, the study shows that the real GDP growth rate has a significant positive impact on the capital adequacy ratio in the Arab region.
期刊介绍:
The International Journal of Business and Management Science (IJBMS) (Print: ISSN 1837-6614; Online: 1985-692X) is a double-blind peer-reviewed semiannual journal. Generally the journal publishes the articles that expand knowledge on business and management issues. Business Complexity and Performance Management were the two of the top ten problems IJBMS cover pageof 20th century management. In the 21st century, overcoming such problems seem to be challenging to educators and practitioners. Do educators and practitioners agree on which management skills are required for success in the 21st century? These all issues call for substantial research to achieve a very modern sustainable business era of the global economy. IJBMS intends to focus on the business and management issues with the vision of sustainable competitiveness along with scientific evidences. The quantitative approach for analyzing a research problem is promoted by IJBMS.