7.[52-64]The Determinants of Banks’ Capital Ratio in Developing Countries

European Journal of Business and Management www. iiste. org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No. 11, 2011 52 | P a g e www. iiste. org The Determinants of Banks’ Capital Ratio in Developing Countries: Empirical Evidence from Tunisia... More

European Journal of Business and Management www.
iiste.
org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 3, No.
11, 2011
52 | P a g e
www.
iiste.
org
The Determinants of Banks’ Capital Ratio in Developing Countries:
Empirical Evidence from Tunisia
Mohamed Romdhane
University of Tunis- Institut Supérieur de Gestion
41, Rue de la liberté, Le Bardo 2000, Tunis, Tunisia
moromd@gmail.
com
Abstract
In this paper, we try to study the determinants of the banks capital ratio in an emerging country.
To do so,
we model the relationships between some variables of the banks and this ratio.
Our aim is to explain its
high level.
We try also to answer to a new question.
Is it affected by the same factors in the emerging
countries as in the industrialized ones?
The sample is composed of 18 banks.
The data are half yearly.
The period sample is from 2002 to 2008.

We find that the interest margin and the risk affect strongly the capital ratio.
They explain the excess of the
capital held by Less