Business Models in European Banking : A Pre- and Post-Crisis Screening

by Ayadi, Rym; Arbak, Emrah; De Groen, Willem Pieter; Llewellyn, David T. (CON)

• ISBN13: 9789461381200
• ISBN10: 9461381204
• Format: Paperback
• Copyright: 2011-11-11
• Publisher: Brookings Inst Pr

Summary

The next few years will be critical for Europe's banking industry. It faces a number of financial sector reforms that will have a decisive impact on the dominant practices and business models followed across the European Union. This timely volume presents the results of the first screening exercise conducted of the performance, stability, risk, efficiency, and corporate governance of 26 major European banks --before, during, and after the financial crisis. The authors use those findings to help identify the key strengths and weaknesses inherent in the dominant business models, in light of the upcoming regulatory changes. "This study is one of the first attempts to disentangle the business models of European banks. The analysis is well anchored in the literature, and a broad range of measures is used to analyze bank business models, including corporate governance indicators. The study also identifies relevant policy implications." --Rudi Vander Vennet, professor in financial economics, University of Ghent

Table of Contents

Foreword	p. 1
Introduction	p. 1
Changing Business Models of European Banks	p. 3
The Literature on Business Models of Banks	p. 9
Data and Methodology	p. 16
Sample selection and data	p. 16
Methodology	p. 20
Results	p. 25
Identification of business models	p. 25
Assessment of models	p. 30
General structure and activities	p. 31
Performance	p. 36
Risks	p. 41
Corporate governance	p. 50
Disclosure practices	p. 55
Conclusions	p. 59
Changing Business Models of Banks in the Post-Crisis Era	p. 63
References	p. 67
List of Abbreviations	p. 74
List of Variables Collected	p. 75
Calculation of Z-score	p. 79
Recent Developments in Sampled Banks	p. 80
Return on Assets (%)	p. 101
Return on Equity (%)	p. 102
Equity Ratio (%)	p. 103
Tier I Ratio (%)	p. 104
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