Higher capital adequacy ratios negatively impact profitability of Bahraini banks.
The article evaluates the financial performance of commercial banks in Bahrain from 2005 to 2015. Data from annual reports, websites, and other sources were analyzed using regression and correlation analysis. The study found that profitability affects capital adequacy and financial leverage, but not efficiency. Higher capital adequacy ratios can lower bank profitability, and financial crises can impact bank leverage and profitability.