Essays on Bank risk, capital and Lending.

Summary This thesis examines three important issues in the banking industry, namely risk, capital and credit. It includes three empirical essays. The first chapter analyzes the impact of the "Arab Spring" and the global financial crisis of 2007-2008 on the stability of the banking sector in the MENA region. The results show that the "Arab Spring" did not have a negative effect on the stability of banks, while the global financial crisis significantly reduced their stability. The second chapter examines the role played by the institutional environment in the establishment of capital buffers by regulators or by banks internally. The results suggest that for regulatory capital ratios to be effective, the institutional environment should not be neglected when setting up these ratios. The third chapter studies the different effects of consumer and creditor rights on the cost of lending. The results show that the cost of lending increases in the presence of strong consumer protection laws, while increasing creditor rights reduces this cost.