Abstract

This study aimed to identify the impact of the application of capital adequacy in commercial banks in accordance with the Basel Agreement (II) on the financial performance during the period (2009-2019), where the study population and its sample were from the financial statements of all Jordanian commercial banks during the period (2009-2019), and their number (13) Jordanian commercial banks, and to achieve the objectives of the study, the (EViews) program was used, where the study showed many results, including: There is a statistically significant effect at the significance level (α≤0.05) of the capital adequacy ratio according to the Basel Convention (II) on the financial performance. For commercial banks using Return on Assets (ROA) during the financial period (2009-2019), it also showed that there is a statistically significant effect at the significance level (α≤0.05) of the capital adequacy ratio according to the Basel Agreement (II) on the financial performance of commercial banks using Return on equity (ROE) during the fiscal period (2009-2019). The study delivered several recommendations, and the most important one is that the necessity for commercial banks to be interested in benefiting from Basel (II) standards in making financial decisions is related to banks' risk management policies.

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