The impact of inflation and interest rates in the capital structure of private commercial banks listed on Damascusstock Exchange

Abstract

This research aims to study the impact of inflation and interest rate on the capital structure of the private commercial banks listed on the Damascus Stock Exchange, during the period from 2009 to 2022. By using cross-sectional time series data models(panel data) and applying it to a sample of banks listed in Damascus Stock Exchange, which are 6 banks(Bemo Saudi Fransi, International Trade and Finance, Syria and the Diaspora, Audi(National Credit), Arab, Byblos). The research reached a set of conclusions, the most important of which is the keenness of commercial banks to strengthen their capital structure since the beginning of the war, which is a positive indicator of banks' efforts to support their capital structure and increase their equity to ward off various risks surrounding their work. In addition, the results of the standard analysis showed a direct and statistically significant effect of inflation and interest rate on the capital structure expressed as(equity/assets) for private commercial banks listed in the Damascus Stock Exchange and a negative and statistically significant effect of inflation and interest rate on the capital structure expressed as(liabilities/assets) for private commercial banks listed in the Damascus Stock Exchange