Abstract

Capital adequacy ratio serves as a basic indicator linking current equities of banks to the amount of risk that they can undertake. Therefore, it is taken into consideration while evaluating banks and expected to be at a normal level. According to the Basel I criteria published by the Basel Committee in 1988 for the international banking sector, capital adequacy ratio as “Total Capital / Credit Risk” should be at least 8%. Basel I Criteria began to be implemented in Turkey in 1992. In this process, it was decided that capital adequacy ratio would be implemented as 8% starting from 1998 in Turkey. The purpose of this study is to identify the factors affecting the capital adequacy of state-owned, private and foreign deposit banks operating in Turkey between 2009-2019. The result obtained from the analysis has revealed that the established model is significant. The ratio of independent variables for explaining the dependent variable is 36%. The independent variable OME has a statistically significant and positive effect on the dependent variable at 1% significance level.

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