Capital Structure and Regulatory Capital of French Banks

Jouida, Sameh; Hallara, Slaheddine

doi:10.1016/s2212-5671(15)00901-6

Cited by 5 publications

(9 citation statements)

References 17 publications

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“…Thus, Berlin (2011) stated that banking literature has yet to establish convincingly whether bank capital decisions are determined by market pressures -perhaps including pressures form borrowers as well as investors -or whether they are best explained as banks meeting regulatory requirements while holding an extra equity cushion. More recently, Jouida & Hallara (2015) and Khadi & Akin (2020) also shared a similar perspective asserting that literature on banks has not come yet to a consensus on the determinants of capital structure. However, Khadi & Akin (2020) found that size, tangibility, and growth opportunities have a positive impact on leverage.…”

Section: Literature Reviewmentioning

confidence: 90%

“…Consequently, it is rare for non-financial corporations to maintain on a regular basis less than 30% equity relative to their assets (Admati, 2016). Likewise, banks` capital structure is fundamentally different from that non-financial firms because it includes deposits, a source of financing generally absent in companies (Jouida & Hallara, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Growth and leverage have been considered positively correlated by several authors indistinctly for nonfinancial and financial firms (Khaki & Akin, 2020;Sibindi & Makina, 2018;Sorokina et al, 2017;Jouida & Hallara, 2015;Gropp & Heider, 2010;Frank & Goyal, 2009). Thus, leverage often rises as natural enabler in the absence of enough owned resources, or when tax shields are rewarding in terms of financial decisions.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Another determinant under analysis is Collateral, assessed as a given security for loans. According to Jouida & Hallara (2015) it is positively related to debt. Holding a high portion of tangible assets, this may serve as collateral in the insurance debt.…”

Section: Literature Reviewmentioning

confidence: 99%

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The capital structure determinants of the Portuguese banking sector: A regional dynamics

Castro

Lopes

2021

Journal of International Studies

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This research focuses on evaluating how strongly common capital structure determinants have an explanatory power on the Portuguese banking financial leverage. It also assesses the impact of financial crisis on the banks' leverage ratios, and its adjustments with capital regulatory requirements. A set of banks selected correspond to the group of financial entities that form the Portuguese Bank Association and that have continually operated as a unique entity over the period 2009-2018. A panel data analysis, based on a fixed effects approach, was used to assess the relationship between financial leverage and the set of selected explanatory variables. The results evidences that there is a significant impact of regulatory capital, the global financial crisis and the eurozone crisis on the leverage levels of the Portuguese banks. Over the period under analysis, regulatory capital, as well as the economic effects of the financial crisis, strongly impacted on the leverage ratios, affecting the capital structure of Portuguese banks. This research provides key outcomes about the impact of structural capital drivers on the Portuguese leverage ratios and the corresponding levels before and after the economic financial crisis. It confirms that a bank may be undercapitalized even when it holds capital above regulatory requirements.

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Section: Literature Reviewmentioning

confidence: 90%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

The capital structure determinants of the Portuguese banking sector: A regional dynamics

Castro

Lopes

2021

Journal of International Studies

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“…Border efficiency is analyzed by empirical, capital structure, and portfolio risk, in France (Jouida & Hallara, 2015), investigating the relationship of capital structure with regulatory capital in banking (Sheikh & Qureshi, 2017), examining how conventional and Islamic commercial banks in Pakistan choose their capital structure and what factors which most significantly influences the choice of their capital structure. Duasa examined the effect of capital structure on Islamic banking performance in 19 countries (Duasa et.al, 2014).…”

Section: Introductionmentioning

confidence: 99%

The Relationship Between Capital Structure and Performance in Islamic Rural Bank

Wahyudi¹,

Fithria²,

Wardiwiyono³

2020

Int. J. Islam. Stud. Human

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The capital structure is important for financial institutions including Sharia Rural Bank (BPRS). However, BPRS has a problem that is the limited capital owned so that it affects performance. The main objective of this paper is to investigate the relationship capital structure and performance of the Islamic Rural Banks (BPRS) in Indonesia. The study using panel data regression to measure the capital structure on performance. The research sample used 164 BPRS that operate in 33 provinces from 2010 until 2017. The results show that capital structure affects DER (debt to equity ratio) and DAR (debt to asset ratio), but negatively affects ETA (equity to total Asset ratio). These findings indicate that there is an increase in the capital structure of the performance of the BPRS in Indonesia. Hence, bank managers must reach a trade-off between the advantages and disadvantages of creating liquidity, and consider the negative relationship between liquidity creation and bank performance when making decisions.

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The Impact of the Financial Ratios on the Financial Performance. A Case of Chevron Corporation (CVX)

Usmonov

2023

Lecture Notes in Computer Science

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Capital Structure and Regulatory Capital of French Banks

Cited by 5 publications

References 17 publications

The capital structure determinants of the Portuguese banking sector: A regional dynamics

The capital structure determinants of the Portuguese banking sector: A regional dynamics

The Relationship Between Capital Structure and Performance in Islamic Rural Bank

The Impact of the Financial Ratios on the Financial Performance. A Case of Chevron Corporation (CVX)

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