A research on the factors affecting capital adequacy in banking

The most important argument of the Basel committee regulations is to ensure capital adequacy. In minimizing the risks that may be exposed in the financial sector the adequacy and quality of capital is of great importance. How effectively the capital adequacy ratio is used the efficiency of banks is also increasing. In this study, bank-specific factors that have an impact on the capital adequacy ratio are investigated. The independent variables affecting the capital adequacy ratio, liquidity ratio, total deposit/total asset ratio, net interest margin, total loan/total asset ratio and non-performing loan ratio are used. For this purpose, the quarterly data of the top 10 deposit banks ranked according to the asset size data dated 31.12.2021 in the time interval 2010:Q1-2020:Q3 formed the variables of the research. The model of the research was determined as panel data analysis in accordance with the data set. When the research results are evaluated, the capital adequacy ratio; Liquidity ratio and total loan/total asset variables negatively affect total deposits/total assets, non-performing loans and net interest margin positively.