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CONSIDERATIONS ON THE STRATEGY OF COMMERCIAL BANKS IN THE CONTEXT OF THE FINANCIAL SYSTEM DEVELOPMENT FOR THE PERIOD 2005-2013

Ioan Trenca (), Daniela Bozga (), Daniela Zapodeanu () and Mihail Ioan Cociuba ()
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Ioan Trenca: Faculty of Economics and Business Administration, Department of Finance, Babes-Bolyai University, Cluj-Napoca, Romania
Daniela Bozga: Faculty of Economics and Business Administration, Department of Finance, Babes-Bolyai University, Cluj-Napoca, Romania
Daniela Zapodeanu: Faculty of Economic Sciences, Department of Finance, University of Oradea, Oradea, Romania
Mihail Ioan Cociuba: Faculty of Economic Sciences, Department of Finance, University of Oradea, Oradea, Romania

Annals of Faculty of Economics, 2017, vol. 1, issue 2, 248-258

Abstract: In this paper we will analyse the strategic changes for the most important banks (228 banks) within the European Union and Switzerland. The (annual) data used are taken from the Bankscope database and cover the period 2005-2013. Particular attention will be paid to analysing the structure of bank resources and placements for the period 2008-2009, in order to capture and understand changes in the assets / liabilities of European banks as a result of the financial crisis. The analysis carried out both in the pre-crisis and post-crisis period will highlight how European banks have responded to the effects of the financial crisis, the speed with which they have adopted new business models, and the difficulties they have faced. The analysis consists of two parts, the first part deals with the similarity of banking assets and liabilities on a sample of 228 banks using the hierarchical cluster method. The second step is to analyse the evolution of the correlation between banking assets and liabilities and the mutations that emerged in the banks' strategy as a result of the economic crisis. The results obtained show that European banks are not homogeneous in terms of the balance sheet structure, but three higher homogeneous groups can be identified, which are geographically divided on the east-west axis (Western Europe - Eastern Europe ); respectively between the main two clusters which consists of Germany / UK / Finland / Italy / Denmark, on one side, and France / Spain / Portugal, on the other. Banking supervisors at European level and the ECB should take into account the high heterogeneity existing at the level of the European banking system when implementing monetary and supervisory policies. With regard to the evolution of the correlation between resources and placements, it is noted that balance sheet items consisting of mortgages, consumer, corporate or other types of credit are generally negatively correlated. At the same time, the economic crisis has led to mutations in the way banks are financed, they manifest a high preferences to attract funds from deposits (short / long term) and only as last resort from other banks.

Keywords: correlation analysis; hierarchical cluster; bank strategy (search for similar items in EconPapers)
JEL-codes: G01 G21 C29 (search for similar items in EconPapers)
Date: 2017
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