What is the impact of privatization on bank risk? The Case of Tunisian banks

The issue of privatization in the banking sector is not limited to a withdrawal of the State, but rather to the new structure of its capital. This paper examines the impact of privatization on the choices of risk of 17 Tunisian banks during the period 1990-2010. It proposed to test the organizational model of this phenomenon resulting from the application of the theoretical framework on bank privatization in developing countries. Following the empirical methodology using panel model, evidence was found that State withdrawal from bank capital increased liquidity risk, but it sometimes reduced it, furthermore, it is to open the capital of banks to foreign investors than to domestic investors.