Impact of the application of the Basel Convention III capital and leverage adequacy standards on banks' financial stability "An applied study on Egyptian banks"

Document Type : Original Article

Author

Arab academy for science and technology

Abstract

The study aimed to analyze the impact of the application of capital adequacy and leverage standards in accordance with Basel Convention III on the financial stability of banks - an "applied study on Egyptian banks." From 2016 to 2022 for 15 banks, the study relied on multi-step regression analysis to test study assumptions, as well as a set of descriptive statistics to characterize the behavior of study variables. The study revealed a series of findings, the most important of which: the study found a non-significant correlation between both the standard of capital adequacy and the financial stability of Egypt's banking sector as measured by the Z-Score. While there is a statistically significant reverse relationship between the capital adequacy standard and the financial stability of Egypt's banking sector at the bank portfolio risk measure (NPL). The study also found a statistically significant expulsion relationship between each of the leverages. (LEV) in accordance with Basel III and the financial stability of Egypt's banking sector as measured by an indicator (Z-Score), while there is an equally significant expulsive relationship between leverage (LEV) in accordance with Basel III and the financial stability of the banking sector in Egypt by the bank portfolio risk measure (NPL)

Keywords

Main Subjects

Files

Share

How to cite

Statistics