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Incitation à la prise de risque sous la réglementation du capital. Influence du pouvoir de marché des banques

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  • Ion Lapteacru

Abstract

In this paper we study the effect on the bank risk-taking behaviour of the passage from the Basle 1 regulation framework to the Basle 2 one, this effect being different according to banks? market power. Our results show that the banks can adopt a pure prudent behaviour only if the capital adequacy ratio is risk based, as is the case of the Basle 2 capital regulation. These results differ according to banks? market power: only the banks with high market power make a prudent investment under Basle 2 if the return on risk asset is low. The increase in this return pushes these banks to change their behaviour and to invest only in risk project. Under these conditions, the effectiveness of the reform Basle 2 could be diminished, as more banks have a risk-taking behaviour. Classification JEL : D43, D82, G21, G28.

Suggested Citation

  • Ion Lapteacru, 2008. "Incitation à la prise de risque sous la réglementation du capital. Influence du pouvoir de marché des banques," Revue économique, Presses de Sciences-Po, vol. 59(3), pages 463-473.
    • Handle: RePEc:cai:recosp:reco_593_0463
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    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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