EconPapers    
Economics at your fingertips  
 

Bank risk during the financial crisis: do business models matter?

Simone Manganelli (), Yener Altunbas () and David Marques-Ibanez ()

No 1394, Working Paper Series from European Central Bank

Abstract: We exploit the 2007-2009 financial crisis to analyze how risk relates to bank business models. Institutions with higher risk exposure had less capital, larger size, greater reliance on short-term market funding, and aggressive credit growth. Business models related to significantly reduced bank risk were characterized by a strong deposit base and greater income diversification. The effect of business models is non-linear: it has a different impact on riskier banks. Finally, it is difficult to establish in real time whether greater stock market capitalization involves real value creation or the accumulation of latent risk. JEL Classification: G21, G15, E58, G32

Keywords: bank regulation; bank risk; Basle III; business models; financial crisis (search for similar items in EconPapers)
Date: 2011-11
New Economics Papers: this item is included in nep-ban, nep-cba and nep-rmg
Note: 196912
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (76) Track citations by RSS feed

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp1394.pdf (application/pdf)

Related works:
Working Paper: Bank Risk during the Financial Crisis: Do business models matter? (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20111394

Access Statistics for this paper

More papers in Working Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().

 
Page updated 2020-08-02
Handle: RePEc:ecb:ecbwps:20111394