The article evaluates the financial performance of Saudi commercial banks before and after following Basel2 requirements. The researchers analyzed the relationship between capital adequacy ratio and various financial indicators like return on assets, liquidity ratio, and debt ratio. After complying with Basel2, banks saw a decrease in profitability but increases in liquidity ratio, loans to assets ratio, debt ratio, assets size, and capital. The study found a direct relationship between capital adequacy ratio and liquidity ratio, and inverse relationships with return on equity, loans to assets ratio, debt ratio, retained earnings, and assets size. The independent variables could explain 80.4% of capital adequacy ratio.