Determinants of banks' capital structure under the latest regulatory anchors

Abstract

This study investigates the determinants of banks’ capital structure and tries to identify if regulatory frameworks are part of these determinants. The sample data used to conduct this research represents banks that operate within the European area and the selected time period is from 2012 to 2018. In order to identify the determinants of capital structure in the banking industry the paper uses extensively corporate finance literature on capital structure for non-financial firms. The results indicate that the determinants of non-financial firms can be applied to the banking sector as well bringing regulatory frameworks to second order importance.