TAILIEUCHUNG - Determinants of bank capital: Case of Tunisia

The capital is essential for increasing the strength and efficiency of the banking system. Indeed, it is interesting to know the determinants of bank capital. In the context of this article, we studied a sample of 18 banks in Tunisia over the period (2000 2013). We found that return on assets, net interest margin, liquidity, rate of inflation, foreign ownership and private ownership affect significantly bank capital. | Journal of Applied Finance Banking vol. 8 no. 2 2018 1-15 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2018 Determinants of bank capital Case of Tunisia Mohamed Aymen Ben Moussa1 Abstract The capital is essential for increasing the strength and efficiency of the banking system. Indeed it is interesting to know the determinants of bank capital. In the context of this article we studied a sample of 18 banks in Tunisia over the period 20 0 0 . .2013 . We found that return on assets net interest margin liquidity rate of inflation foreign ownership and private ownership affect significantly bank capital. JEL classification numbers C23 G21 C32 Keywords Bank capital return on assets net interest margin rate of inflation liquidity foreign ownership private ownership. 1 Introduction Capital is important in banking. One of the essential requirements for banks and financial institutions is adequate and sufficient capital and every banks and financial organizations must keep balance between capital and available risk in its assets in order to guarantee its stability. Bateni et al 2014 . The concept of capital adequacy appeared in the middle of the 1970 s because of the expansion of lending activities in banks without any parallel increase in its capital since capital ratio was measured by total capital divided by total assets Al Sabbagh 2004 . Indeed Sharp 1977 defined capital as a difference between assets and deposits so the larger the ratio of capital to assets or the ratio of capital to deposits to safer the deposits. As capital was adequate deposits were safe enough. His idea was that if the value of an institutions assets may decline in the future its deposits will generally be safer the larger the current value of assets in relation to the value of deposits. Dowd 1999 found in this study that the minimum capital standard s financial institutions can be seen as a means for reinforcing the security of deposits and robustness of banking system. 1 Faculty of

• Ngân hàng - Tín dụng
• Return on assets
• Net interest margin
• Rate of inflation
• Foreign ownership
• Private ownership
• Stock return
• Debt to equity ratio
• Total asset turnover
• Oil price
• Exchange rate
• Finance accounting and Auditing
• Financial leverage
• Real estate business
• Return On Capital Employed (ROCE)
• Return On Assets (ROA)
• Return On Equity (ROE)
• International Conference on Emerging Challenges
• Return on sales
• Return on equity
• Accommodation service
• Financial performance
• Moroccan microfinance institutions
• MIX platform
• Bonds issuance
• Banking performance
• Banking crisis
• Vietnamese construction firms
• Capital structure choice
• Bank capital affects profitability
• Two step GMM
• Return on equities
• Vietnam Stock Exchange
• Linear regression model
• ROA and ROE
• Capital adequacy ratio
• Vietnamese commercial banks
• Loan loss reserves
• Return on capital
• Listed construction companies
• Shareholder’s equity
• Liquidity risk
• Total assets
• Bank size
• Saudi arabia and Jordan
• Capital structure
• Debts to Assets
• Firm’s performance
• Asset tangibility
• Management capacity
• Financing decision and firm performance
• Evidence from an emerging country
• Long term debt to total assets
• Ho Chi Minh Stock Exchange
• Generalized method of moment
• Content analysis
• Corporate Social Responsibility Disclosure
• Corporate Financial Performance
• đầu tư chứng khoán
• các loại hình cổ phiếu
• tìm hiểu cổ phiếu
• kĩ năng chơi cổ phiếu
• nghệ thuật chơi cổ phiếu
• thị trường chứng khoán
• phân tích chứng khoán
• khái niệm chứng khoán
• phương pháp đầu tư
• hệ số thu nhập tài sản
• Corporate liquidity holdings
• Firm size
• Corporate liquidity demand
• Influence corporate liquidity holdings
• Non performing loans
• Indonesian Stock Exchange Banking sector
• Loans to deposits
• Return to assets
• Gross domestic product
• Commercial banks’ performance
• Determinants of banks’ performance
• Sustainable growth of emerging economies
• Net Interest Margins
• Tehran Stock Exchange
• Long run corporate tax avoidance
• Avoidance of paying taxes
• Economic value added
• Market value added
• Impact of the external
• Internal factors of bank performance
• Indian commercial banks
• Do foreign chief executive officers perform better than local ones
• Foreign chief executive officers
• The foreign chief executive officer
• The market performance measure
• Working capital management
• Tobin’s Q
• Cash conversion cycle
• Correlation analysis
• Lecture Accounting
• Accounting information
• Accounting standards
• Fundamental interpretations
• Financial statement data