The Impact of Capital on Bank Profitability: Case of Tunisia

The capital adequacy ratio measures the ability of a financial institutions to meet its liabilities by comparing its capital with assets.

This article studied the relationship between bank capital and bank profitability measured by (Return on assets; return on equity; net interest margin). We used a method of static panel for a sample of 11 banks in Tunisia between (2000…2018). We found that bank capital has a significant impact on ROA. But capital has a non significant effect on bank return on equity and not significant impact on bank net interest margin.