Proceedings of The 3rd International Conference on Research in Human Resource Management
The Impact of Capital Adequacy on Banking Risk “Evidence from Jordan”
Dr. Osama Samih Shaban
This study aimed to examine the impact of the capital adequacy on banking risks in Jordanian commercial banks. In order to achieve the objectives of the study, the quantitative approach was adopted in this study, which focuses on describing the study sample and its variables, and then testing the hypotheses. The study population included all the Jordanian commercial banks in the Amman Stock Exchange (ASE). After verifying the published financial reports, all the 13 commercial banks were accredited during the time period (2016-2021). The results of the study concluded that there is a statistically significant effect of capital adequacy in reducing risks in Jordanian commercial banks. Main recommendation encourages banks to adopt moderate capital adequacy regulations in order to increase the bank lending and banking investments.
keywords: Capital adequacy, Banking risks, Jordanian commercial banks