The Relationship between Capital and Bank Risk: Evidence from Tunisia

  •  Mohamed Aymen Moussa    


The capital and risk are two important variables in banking. Indeed , capital can protect banks against shocks and excessive risks. But according to other researchers , there is a positive relationship between capital and risk.

In the context of this article, we looked at 18 banks in Tunisia over the period (2000-2010), we found that there is a negative relationship between the capital and bank risk by applying a static panel method.

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