14 Jan 2016

Banking Business Models Monitor 2015: Europe

Rym Ayadi / Willem Pieter De Groen / Ibtihel Sassi / Walid Mathlouthi / Harol Rey / Olivier Aubry

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In the context of evolving market structures and regulations, where fundamental changes keep applying to the European Banking Sector, especially since of the financial crisis of 2007-2009, the banks’ business models analysis provides market participants, depositors, creditors, regulators and supervisors with a useful tool to better understand the nature of risk attached to each bank business model and its contribution to systemic risk throughout the economic cycle. The 2015 Business Models Monitor of the European banking sector assesses the banking sector structure in light of the changing economic, legislative and supervisory environment.

With the objective of covering the entire European banking sector, the 2015 Business Model Monitor includes 2,528 banking groups and subsidiaries of non-European banks, which account for more than 95% of the EEA and Swiss banking assets. The Monitor also uses a unique definition and a novel clustering model featuring SAS programming. For the analysis, the 13,040 bank-year observations were clustered into five broad categories: focused retail, diversified retail (Type I and Type II), wholesale and investment banks.

The study is authored by Rym Ayadi, Professor at the Department of International Business at HEC Montreal and Director of the IRCCF and Alphonse and Dorimène Desjardins International Institute for Cooperatives, Willem Pieter de Groen, Associate Researcher at the IRCCF and Research Fellow at the FIPP Unit at CEPS, Ibtihel Sassi, Walid Mathlouthi, Harol Rey and Olivier Aubry, researchers at the IRCCF.