The topic of capital structure is one of the most important topics that have received the attention of scientific research in the field of financial management because it is related to one of the most important financial decisions in the organization, namely the financing decision. Since the goal of all business organizations is to survive, grow and prosper, it is imperative for them to achieve a good level of financial performance, and this can only be done by making the right decisions, especially those decisions of a financial nature that start from the financing decision.

This research deals with the impact of capital structure on the financial performance of Syrian banks listed in the Damascus Stock Exchange for the period 2017-2024. To achieve the objectives of the study, the descriptive analytical approach was adopted, where the study community was represented by the Syrian banks listed in the Damascus Stock Exchange and the research sample was 11 Syrian commercial banks. Their semi-annual financial data were obtained and the weighted least squares multiple regression technique (Wls) was used to analyze the data collected for the study.

 The results of the statistical analysis showed a statistically significant positive effect of (0.487) for the determinants of capital structure (debt/equity - debt/assets) on the financial performance of Syrian commercial banks, and a statistically significant negative effect of (-0.029) for the debt/equity ratio on financial performance of Syrian commercial banks. As for the debt-to-assets ratio, it had a statistically significant positive effect of (0.13) on financial performance, while the bank size as an intervening variable between the asset structure and financial performance showed a positive effect of (0.38).

 The study showed  overleveraging exacerbates financial distress in volatile economies, in line with the dynamics of conflict zones, while larger banks showed resilience by absorbing various risks. This research emphasizes the need for Syrian banks to balance the mix of debt and equity, taking into account operational size as a strategic barrier and guiding policymakers and financial managers in optimizing capital structures under Syria's unique socio-economic constraints.

Keywords: Capital structure; financial performance; Syrian banks