Comparative Study of Capital Adequacy and its Effect on the Performance of Commercial Banks; a Case Study of Banks in Iran and Turkey

Document Type : Original Article

Authors

1 Assistant Prof of Islamic Azad University North Tehran Branch, Iran

2 MSc. Student of Islamic Azad University North Tehran Branch, Iran

10.22034/iaar.2021.141676

Abstract

The purpose of this study was to investigate the effect of capital adequacy on the performance of banks and how this impact from one country to another according to cultural, geographic and other factors, is to examine the adequacy of the capital and its impact on the performance of commercial banks in Iran and Turkey. In the realm of time from 2009 to 2015. To test the hypotheses, correlation test and linear regression test have been used. The results of the study show that the effect of the independent capital adequacy variable on the utilization rate is confirmed positively and significantly on the basis of the totality of the research data and the data of each country separately. The effect of the independent variable of capital adequacy on profitability is confirmed positively and significantly by the separate data of Turkey, but according to Iran's data, the fourth hypothesis is the comparison of the effect of capital adequacy on profitability between the two The country was not tested. The relationship between the effect of capital adequacy on the utilization of the two countries is not significant. Also, there is no significant difference between the average return on assets, return on equity and debt to equity ratio between the two banks.

Keywords

Accounting and Auditing Research
Volume 13, Issue 51
September 2021
Pages 81-94

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