State-owned banks' capital strength linked to liquidity, asset quality, and profitability.
The study looked at how factors like bank liquidity, asset quality, profitability, and bank size affect the capital adequacy of state-owned banks. Researchers analyzed financial data from four state-owned banks over a period of four years. They used a method called multiple regression to understand the relationship between these factors and capital adequacy. The main goal was to see how these different aspects of a bank's operations impact its ability to meet capital requirements.