The main objective of this study is to investigate the impact of capital adequacy ratio on risk, performance and quality management in Pakistan both in commercial and Islamic banking sector. We used panel data from 2000 to 2019 in annual frequency. Data was comprised of 10 commercial and 11 Islamic largest banks of Pakistan. Many of the previous studies was based on either Islamic or conventional banks. Rare of the study has been conducted for checking their mutual relationship in case of Pakistan. This study based on the conventional commercial and Islamic banks in Pakistan affected by capital adequacy ratio upon risk, performance and Quality management. Study concluded that the impact of capital adequacy ratio and risk is negative and significant which indicates that in commercial banks, increase in bank’s capitalization ratio will decreases the bank risk taking. Moreover, capital adequacy ratio and size have a negative impact on performance of banks. Quality management is positively associated with capital adequacy ratio which means that an increase in the capital adequacy ratio will increase the efficiency of the banks. Size is also significant in the risk equation which indicates that more the assets bank have more they able to manage their risk. Thus, large banks have more opportunities in managing risk levels through diversification. Supervisor: Dr Abdul Rashid Co.Supervisor: Dr Attiya Yasmin Javid