Determinants of Capital Adequacy Ratio in the Banking Sector: Evidence from the Arab Region

The capital adequacy ratio is one of the most important indicators used to assess ability banking sector absorb shocks. Therefore, central banks have paid attention importance monitoring this on an ongoing basis, given vital role in supporting economy. In paper, we investigate and economic factors that could affect Arab sector, by using dynamic panel data model for a 35 spread across seven countries during period 2015 2020.
 
 results show there positive significant relationship between credit risk (ratio non-performing loans total loans) size bank hand, other hand. There also negative profitability (return assets) ratio, while no provisions ratio. Finally, regarding variables, study shows real GDP growth rate has impact region.