The main function of commercial banks is the process of transferring liquid sources of funds such as deposits to less liquid assets, which are loans, and to liquid assets such as present cash and cash equivalents, in a balanced manner between liquid and less liquid assets that guarantee the preservation of the rights of depositors and the bank. Therefore, we find that capital adequacy indicators may reflect a misleading picture of the status of commercial banks, in terms of the strength of their balance sheets and the extent of their commitment to the instructions and standards of Basel ш decisions and the instructions of the Central Bank.In order to find out about this problem and try to find solutions to it, the study aimed to determine the impact of applying what was approved by the Basel ш Committee in determining the optimal capital adequacy ratio. It also represented the study population in the banks listed within the Iraq Stock Exchange. While the study sample consisted of two banks, namely the Bank of Baghdad and the Sumer Commercial Bank, for the period from (1/1/2019) until the period (31/12/2020) .The capital adequacy standard was actually applied in Iraq, specifically in the year 2020. The Central Bank issued a memorandum to all licensed commercial banks in Iraq to start the experimental application of the capital adequacy standard on the thirteenth of November 2018. The actual implementation of it will take place within a year 2019. To find out the difference between before and after the application of this standard and its impact on the capital adequacy of the banks between 2019 before the actual application of the standard in banks and after its application in 2020. The Social Statistical Sciences (spss) program was also used to analyze and test the hypotheses of the study.