Title: The role of the core requirements of Basel 3 Committee's decisions in improving internal audit quality under corporate governance in Jordanian commercial banks

Authors: Nofan Hamid Al-Olaimat; Mohammad Naser Hamdan; Dea'a Al-Deen Al-Sraheen; Hamza A. Alali

Addresses: Accounting Department, Al-Bayt University, Jordan ' Accounting Department, Al-Bayt University, Jordan ' Accounting Department, Al-Bayt University, Jordan ' Accounting Department, Al-Qadisiyah College, Jordan

Abstract: Through banking supervision, the Basel 3 reports strengthen the solidity of financial stability and compatibility among national supervisory systems and practices. This study examines the role of Basel 3 under core requirement using regulatory capital, capital adequacy ratio, and financial gearing ratio to improve internal audit quality. The methodology used involved a quantitative method using questionnaires distributed among internal audit, risk management and credit staff in 20 banks, after which 79 from the distributed 90 questionnaires were deemed valid for analysis. The software used for processing and analysing data was smart PLS. After data analysis, the study results showed that there is a statistically significant positive moderating role of Basel 3 Committee in improving internal audit quality under corporate governance in Jordanian commercial banks.

Keywords: Basel 3; internal audit quality; corporate governance; Jordanian commercial banks.

DOI: 10.1504/IJBIR.2024.141616

International Journal of Business Innovation and Research, 2024 Vol.35 No.2, pp.157 - 172

Received: 18 Jun 2021
Accepted: 26 Aug 2021
Published online: 27 Sep 2024 *

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