The impact of the capital structure in the aspect of banking safety measurement applications and standards (basel and camel)‎ on liquidity risk : an applied study on commercial banks operating in Gezira State-Sudan-2015-2018

Abstract EN

The study aimed at analyzing the effect of the capital structure on liquidity risks in Sudanese banks to achieve the principles of banking safety, which would consequently lead to raise the efficiency of financial performance indicators in Sudanese banks.

The inductive approach used to test the hypotheses to ensure their validity.

The descriptive analytical method used for interpreting and analyzing field study information using statistical analysis through the Statistical Package for Social Sciences (SPSS) to reach the results.

The study tested the following hypotheses: There is a statistically significant relationship between the capital structure and reducing liquidity risk; and whether these statistical indications can achieve banking safety and thus raise the efficiency of financial performance indicators in Sudanese banks.

The importance of the study stems from the importance of dependent and independent variables represented the impact of capital structure on liquidity risk at the levels of the national sector general and the banking sector in particular; the capital structure effect on achieving banking safety at the national economy level in general and the banking sector in particular.

It clarifies the effect of the capital structure on enhancing the efficiency of financial performance indicators for the national economy.

The main results of the study are as follows: Developing a clear strategy to preserve capital at the appropriate level required to face liquidity risks; the necessity for banks to establish balance between borrowing funds and property money to providing liquidity to depositors in order to return their money upon request by increasing capital for banks and reserves; the need for stability in various economic policies so that Sudanese banks can reduce liquidity risks and achieve banking safety; paying attention to studies and academic research at a practical level; Sudanese banks administrations must adhere to the standards of capital adequacy issued by the Basel Committee and the Islamic Financial Services Council in order to achieve banking safety.