Book

Description

This book is based on the thesis defended by Dr. Nadim AlFouhaili on 2 Mars 2021 at the University Paris-I Panthéon-Sorbonne. In this book, the author invented a new statistical model called “Integrated Effect” to investigate the impact of Basel III capital regulation on risk and profitability in the banking sector. This new model is based on machine learning techniques called Bayesian Belief Network (BBN) which is a graphical representation of a probabilistic model that encodes a set of conditional independence relationships. BBN has become a popular tool for decision-making systems in various fields such as biology: Hassen, Masmoudi, and Rebai (2008), computer science: Bouchaala, Masmoudi, Gargouri, and Rebai (2010) finance: Abid, Zaghdene, Masmoudi, and Ghorbel (2017) and in governmental trends Dbouk and Zaarour (2013). This book is based on four interconnected academic articles which are: 1-The Impact of Basel III Capital Regulation on Credit Risk: A Hybrid Model 2-The Impact of Basel III Capital Regulation on Profitability: A Hybrid Model 3- The Trade-off between Banking Risk and Profitability under Basel III Capital Regulation 4- The interaction effect of GDP growth on the relationship between Basel III capital regulation, credit risk, and profitability This book will be interesting to those in the field of banking regulation, corporate banking, banking supervision, and central banks managers. This book is relevant to scholars and researchers who study Basel III regulation and banking risks and to policymakers in financial institutions.