Effect of the Internal Banking Mechanisms of Governance on the Risk-taking by the Tunisian Banks

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Author	Bassem Salhi, Younes Boujelbene
ISSN	2225-7217
On Pages	8-19
Volume No.	1
Issue No.	1
Issue Date	February 01, 2020
Publishing Date	February 01, 2020
Keywords	Bank Governance, Banks, Ownership Structure, Board of Directors, Banking Risk

Abstract

This study aims to analyze the relationship between internal governance mechanisms and risk-taking by banks in Tunisia. Empirical analyzes conducted from a sample of 10 Tunisian banks during an analysis period of 8 years from 2002 to 2009, also show significant results. Indeed, the concentration of capital and the size of banks have negative impact and highly significant risk on banks. In addition, Tunisian banks are foreign owned and tend to take less risk than other banks. As for the participation of the state in the capital, it has increased the risk in Tunisian banks. In addition, the size of the board has a positive and highly significant impact on bank risks, while the proportion of institutional administrators on the board is negatively and significantly related to the risk.

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