Bank Business Models in Europe: Why Does it Matter for the Future of Regulation and Resolution?

Abstract

In this changing context of evolving market structures and regulations, the bank business models analysis can provide 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. This policy paper explains the relevance of the business models analysis in banking for the future of regulation and resolution. First, it provides a quick background, a snapshot of the definition, methodology and findings relating to a comprehensive sample of European banks, and secondly, it delves into the importance of bank business models analysis for regulation and resolution in Europe.

Keywords: Regulation, Europe, Financial Crisis, Bank, Business Models, Cooperative