Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Influence of Capital Adequacy on Financial Stability Indexes a Field Study in Commercial Banks in Jordan

Author(s): Shireen Mahmoud AlAli

This study aimed to investigate the Influence of Capital Adequacy on Financial stability Indexes in Commercial Banks in Jordan (Return on Invested Capital ROIC, profitability Rate PR), follows the descriptive analytic approach in order to analyze the results. The population of the study consists of all commercial banks in Jordan, A sample selected from these population (13) commercial banks in Jordan. The results of the study showed Most of Jordanian banks, committed to capital adequacy ratio defined in the international (Basel II), this ratio largest percentage of decided by the BaselII Committee, and there is statistically significance influence of capital adequacy ratio on financial stability indexes (Profit Rate) and (return on invested capital ratio) in Jordanian banks.