Here is the article in markdown format:

Impact of Regulatory Capital Pressure on Bank Profitability and Risk

The study “Regulatory Capital Pressure and Bank Performance” examines the impact of regulatory capital pressure on bank profitability and risk in Tunisian banks. The main points of this study are outlined below.

Methodology

Measures Used

• Z-score is used as a measure of bank risk-taking.
• Basel minimum capital adequacy ratio is used as a proxy for regulatory requirements.

Control Variables

The study controls for the following bank-specific characteristics:

• Size
• Net interest margin
• Liquidity risk
• Credit risk
• Cost efficiency
• Lending policy
• Diversification

Additionally, the study also controls for macroeconomic conditions:

• Political instability
• Business cycle
• Inflation

Key Findings

(Note: Unfortunately, there are no specific key findings mentioned in the text. The text only provides a summary of the study’s methodology and control variables.)