The Impact of Capital on Bank Lending: Case of Tunisia

Abstract

Capital and lending are two important variables in the banking industry. On the one hand, capital increases the financial solidity of a bank whereas lending is essential to generate revenue from interests and satisfy the needs of customers. In this article, we studied a sample of 11 banks in Tunisia for the period (2005-2020). We used a method of panel static. We found that capital has a positive and significant impact on bank lending.