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The importance of banks is undeniably significant to any economy. As a result of the recent financial crisis, the nexus between finance and other industries become apparent. The deterioration of bank´s financial statement can be catastrophic not only to the bank itself but the entire banking industry. Indeed, the effect of the banking crisis can have a ripple effect to the economy. This work examines what determines the bank capital structure and how they differ from manufacturing firms. In addition, the significance of the regulatory capital is put into test. More important, the work examines the banks speed of adjustment to the equilibrium and how this from manufacturing firms.

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Dr. Isaiah Oino is an ACCA affiliate with a number of years in practical accounting and lecturing. Before embarking to academia, Isaiah worked in oil company and credit union in finance. In addition, Isaiah worked as production manager in a number of manufacturing companies in London. His main research interests are financial prudential regulations

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