Voluntary capital boosts French bank performance during financial crises.
The study looked at how different types of capital held by French banks affect their performance. They found that having more voluntary capital, which banks hold regardless of regulations, leads to better performance. On the other hand, regulatory capital, which is required by rules like Basel III, doesn't seem to have a significant impact on performance. This suggests that increasing capital requirements in France from 2007 to 2014 didn't harm the banks' performance.