Abstract

this research aims to analysis and discuss the topic “the capital adequacy in accordance with the requirements of the Basel Committee III and its effect on the profitability of Commercial Banks ” an empirical study on banks (Middle East, Baghdad), for the period of the year (2006) and year (2015), by using of descriptive analaysis, to describe, analyze and measure the adequacy of capital of the banks , and the profitability, The capital adequacy ratio was measured by dividing the total capital on risk weighted assets, after measured and appreciation in research, while banks used to measure profitability indicator financial ratios (return on assets, return on equity, interest rate, net profit margin), ANOVA was used for measuring the relationship of research variables, the study results have been pointed out that there is a negative statistical implication between capital adequacy and profitability in the Middle East bank, i.e., the one unit growth in the ratio of capital adequacy leads to a decrease profitability about (0.160), as well as proving the link relationship only in the bank of Baghdad, this proves the validity of the search hypothesis, while While this was not proven on the Bank of Baghdad data.

DOI:10.52113/6/2018-8-1/137-164