OPINIONS REGARDING BUSINESS MODEL IN THE EUROPEAN BANKING SYSTEM

Handro Paul Ovidiu
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Handro Paul Ovidiu: DOCTORAL SCHOOL OF ECONOMIC SCIENCES, CRAIOVA

Annals - Economy Series, 2018, vol. SPECIAL, 193-197

Abstract: The banking system is facing a lot of changes, from the regulatory framework, external competition, low interest rates up to the customers different behavior and expectations. The business model of banksis important both from revenue streaming point of view and for creating stability in the financial system. In recent times scholars and regulatory bodies have expressed their opinion and interest regarding how different banking business models faced to the crisis shocks. The present paper is resuming part of these opinions which converge to the same conclusion, retail banking business model was less affected by the crisis, in comparison with wholesale and investment banking business models, and created value for the economy. In a low rates interest environment and an increasing external and internal competition revenue diversificationbecomes an option. Moreover, increase of cost efficiency by changing the operating model it’s a complex action and very costly, so each bank should have a personalized approach based on identified strengths and weakness.

Keywords: business model; retail banking; investment banking; wholesale banking (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2018:v:special:p:193-197

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