%0 Unpublished work %T The Role of Market Discipline on Bank Capital Buffer: Evidence from a Sample of European Banks %+ Laboratoire d'Analyse et de Prospective Economique (LAPE) %A Distinguin, Isabelle %A Rugemintwari, Clovis %8 2011 %D 2011 %Z Humanities and Social Sciences/Economics and FinancePreprints, Working Papers, ... %X Using a sample of European commercial banks over the period 1993-2006, we show that market discipline significantly and positively affects banks' capital buffer. By distinguishing junior from senior debt holders, we find that both types of investors exert a pressure on banks to hold more capital but that the pressure exerted by junior debt holders is higher. Furthermore, junior debt holders exert a pressure on banks whatever the importance of their non-traditional activities. By contrast, we find that senior debt holders exert a pressure only on banks that are heavily involved in non-traditional activities that are badly taken into account in the current bank capital regulation framework. These results might help us to better understand the role of market discipline as a complement to capital regulation. %G English %2 https://unilim.hal.science/hal-00916739/document %2 https://unilim.hal.science/hal-00916739/file/distinguin_rugemintwari_2011.pdf %L hal-00916739 %U https://unilim.hal.science/hal-00916739 %~ SHS %~ UNILIM %~ AO-ECONOMIE %~ LAPE