EFFICACITE DE LA REGLEMENTATION PRUDENTIELLE DES BANQUES : VALIDATION EMPIRIQUE
To ensure stability of the banking sector at the international level, the Basel Committee has established prudential regulation. The main objective of this article is to study the effectiveness of this regulation by analyzing the relationship between risk and the level of bank capital. The model developed by Shrieves and Dahl (1992) provides a solid framework and adequate analysis to the objectives of the research. Thus, it is modified and tested empirically on a sample of 255 banks of the G8 countries using the 2SLS method (the interrelation between risk and capital). The results show a positive relationship between risk taking and capital level of banks studied. Overall, a strict regulatory environment improves the solvency of banks with a difference in behaviour between undercapitalized banks and well-capitalized banks.
