PRIVATE FINANCIAL SECTOR BEHAVIOUR'S ROLE IN THE FINANCIAL CRISIS: CASE OF THE BANK SECTOR

Research on Financial crises and mechanisms causing them spurted the interest of actors. Nevertheless, the sudden and the extent of the disasters witnessed re cently questions the ability of researchers to cont ain to understand their true sources. It is against this b ackground that further investigating the underlying causes of these crises is very crucial. A number of studies L ahore (2011), (Tillmann (2005), Davis and Stone (20 04)) have dealt with the role of private agents in creat ing financial fragility. Then, analysing private ag ents’ financial behaviour in terms of their malfunctionin g and excessive risk taking may be a new venue of explaining recent financial crises. Our results con firm the existence of micro-mechanisms likely to be a source of shocks, suggesting the need to further involve p rivate agents into the prevention and resolution of financial crises. Using a questionnaire-based survey of a num ber of banks, we point to the existence of a behavi our deficiency. This state of affairs is validated by an analysis of the ratios inspired by the works of M iotti and Plihon (2001), followed by an application of Sinkey and Blasko’s model (2006).We found out that agents with a deficient behaviour tend are associated with a hi gh risk level, and higher deficiency probability.