العلاقة بين كفاية رأس المال و السيولة في القطاع المصرفي السعودي

Abstract EN

The aim of Research was to study the relationship between Capital Adequacy and Liquidity in the Saudi banking sector.

The sample of the study included six Saudi banks during the period 2010-2016.

The focus was on a range of financial ratios.

Panel data analysis was used and depended on Panel Least Squares method and focused on Fixed Effects Model and Random Effects Model to test the hypothesis.

A number of results were found: there are statistically significant relationship between Capital Adequacy variables: (Equity Capital to Total Assets, Equity Capital to Total Assets, Equity Capital to Risk – Assets, and Equity Capital to Loans) and between Liquidity variables: (Cash to Current deposits, cash to total deposits, Cash to Total Liabilities, and Investment Ratio).

The study also indicating a long term trade-off relation between Capital Adequacy and liquidity.

A number of recommendations related to the research findings were made