This book is a result of several years of research to provide readers with a novel and comprehensive analysis on business models in banking, essential to understanding bank businesses pre- and post- financial crisis and how they evolve in the financial system. This book will provide depositors, creditors, credit rating agencies, investors, regulators, supervisors, and other market participants with a comprehensive analytical framework and analysis to better understand the nature of risk attached to the bank business models and its contribution to systemic risk throughout the economic cycle. The book will also guide post-graduate students and researchers delving into this topic.

Banking Business Models: Definition, Analytical Framework and Financial Stability Assessment (Palgrave Macmillan Studies in Banking and Financial Institutions)

Business & Money

Ayadi, Rym

Economics

PALGRAVE~MACMILLAN

The European banking sector consolidated at a rapid pace throughout the 1990s. It was pushed along by several concurrent factors: the deregulation of banking activities, the further integration of the European financial market, financial globalization, technological and financial innovations, the imperative of value creation, and the introduction of the euro. Far from slowing down, this consolidation process is expected to accelerate over the coming years. This book examines the performance of mergers and acquisitions (M&amp;As) in the banking industry in Europe and introduces a new conceptual approach for assessing the phenomenon. The results show that the economic and financial performance of a banking M&amp;A depends on its underlying strategy. This strategy is based on two factors: a bank's initial activities and its geographical reach. The book demonstrates that achieving the optimal combination of these two factors is critical to the success or failure of an M&amp;A.

Assessing the Performance of Banking M&As in Europe: A New Conceptual Approach

Centre for European Policy Studies

This book investigates the merits of a diverse banking system with a special focus on the performance and role of cooperative banks in seven European countries: Austria, Finland, France, Germany, Italy, the Netherlands, and Spain. The authors compare banks that aim to maximize shareholder value with cooperative banks that concentrate on increasing "stakeholder value" for a larger and more diversified group of subjects representing varied interests. The theoretical and empirical arguments that are developed support the view that it is economically beneficial to have banks looking out for both shareholders and a broader group of stakeholders.
 This book is the result of a two-year research project designed by the Financial Institutions and Prudential Policy unit of CEPS. The project was directed by a scientific committee composed of Rym Ayadi, senior research fellow at CEPS; David T. Llewellyn, Loughborough University, CASS Business School and the Vienna University of Economics and Business Administration; and Reinhard H. Schmidt, professor at the University of Frankfurt. The research team was composed of the members of the scientific committee and researchers from CEPS; Emrah Arbak, researcher; and Willem Pieter De Groen, research assistant.

Investigating Diversity in the Banking Sector in Europe: Key Developments, Performance and Role of Cooperative Banks

Llewellyn, David T.

Schmidt, Reinhard H.

Arbak, Emrah

De Groen, Willem Pieter

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 on the performance, stability, risk, efficiency, and corporate governance of twenty-six 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.

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

Amidst talk of establishing an EU-wide banking union, the recent changes in the regulatory framework and the rethinking of the future of European banking structure, the future of EU bank regulation is inextricably linked to banks' business models. Using a sample of over 70 banks, which overlaps with those subjected to the European Banking Authorities' 2011 stress tests, this report emphasizes the key regulatory gaps that emerge from a comprehensive analysis of the soundness and performance of bank business models. This analysis provides policy-makers with guidance to reinforce the evolving regulatory framework in European banking.

Regulation of European Banks and Business Models: Towards a New Paradigm?