Abstract

This paper examines Article 18 of the Capital Law, which raises the threshold for popular banks to transform into joint-stock companies. This intervention, introduced in addition to the changes in 2015, raises doubts due to the arbitrary nature of the threshold and the European justifications provided for it. Years later, these doubts appear even more valid, especially considering the placement of the provision within the regulatory framework. Concerns are only partially eased when considering this intervention as potentially favorable to merger operations involving multiple banks.