Le Niveau De Capitalisation Et La Solidite Bancaire : Une Relation Controversee

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Kadandji Andre
Kadandji Andre
1 Institut Universitaire Catholique Saint JrAme de Douala

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In this article we review the literature on the relationship between the capitalization requirement and the ability of the bank to withstand a shock. The theoretical literature review reveals a controversy about the relationship between the level of capitalization and bank robustness. On the basis of portfolio selection theory, a binding capitalization requirement can lead to an increase in risk taking. Conversely, the state preference theory argues for the positive effect of the capitalization requirement on bank robustness.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Kadandji Andre. 2018. \u201cLe Niveau De Capitalisation Et La Solidite Bancaire : Une Relation Controversee\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 18 (GJMBR Volume 18 Issue C4): .

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Issue Cover
GJMBR Volume 18 Issue C4
Pg. 49- 58
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: G29
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v1.2

Issue date

June 26, 2018

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English

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In this article we review the literature on the relationship between the capitalization requirement and the ability of the bank to withstand a shock. The theoretical literature review reveals a controversy about the relationship between the level of capitalization and bank robustness. On the basis of portfolio selection theory, a binding capitalization requirement can lead to an increase in risk taking. Conversely, the state preference theory argues for the positive effect of the capitalization requirement on bank robustness.

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Le Niveau De Capitalisation Et La Solidite Bancaire : Une Relation Controversee

Kadandji Andre
Kadandji Andre Institut Universitaire Catholique Saint JrAme de Douala

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