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Cluster analysis of bank business models: The connection with performance, efficiency and risk

Valentina Lagasio and Anna Grazia Quaranta

Finance Research Letters, 2022, vol. 47, issue PA

Abstract: We ran a worldwide investigation of the business models of 1,237 banks during 2011–2017 by applying a cluster analysis including ratios from both sides of the balance sheet of the bank and income statement. Then, via a connection analysis, we analysed whether there is a link between the adoption of a specific business model and size, profitability, efficiency and risk profile. We found that a bank business model is based on different endogenous factors (bank financial statements items and operating strategy) and can be linked to exogenous factors (financial crises, policies of central banks).

Keywords: Banks; Business model; Cluster analysis; Profitability; Risk (search for similar items in EconPapers)
JEL-codes: G21 G32 L11 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005754

DOI: 10.1016/j.frl.2021.102640

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