The Impact of Capital Adequacy Indicators on Credit Risk in Libyan Banks: An Empirical Study on Jumhouria Bank and National Commercial Bank
Authors
Dr. Mouloud Ramadan Abukhrais / Dr. Fathi Jumaa Alzaghdani
Abstract
This study aimed to examine the impact of capital adequacy indicators on credit risk in Jumhouria Bank and National Commercial Bank during the period (2008–2017). Financial data was analyzed using equity ratios (to total assets, risk-weighted assets, total deposits, and total loans) as independent variables affecting credit risk as the dependent variable. Using multiple linear regression via SPSS, the results revealed a statistically significant impact, with these indicators accounting for 89.8% of the variance in credit risk.
Keywords
Capital Adequacy / Credit Risk / Risk Assets / Libyan Banks
How to cite
Dr. Mouloud Ramadan Abukhrais / Dr. Fathi Jumaa Alzaghdani (2021). The Impact of Capital Adequacy Indicators on Credit Risk in Libyan Banks: An Empirical Study on Jumhouria Bank and National Commercial Bank. Al-Afaq Scientific Journal, Volume 2, Issue 4.