Post-Crisis Changes in Global Bank Business Models: A New Taxonomy
35 Pages Posted: 23 Jan 2020
Date Written: December 2019
The Global Financial Crisis unleashed changes in the operating and regulatory environments for large international banks. This paper proposes a novel taxonomy to identify and track business model evolution for the 30 Global Systemically Important Banks (G-SIBs). Drawing from banks' reporting, it identifies strategies along four dimensions-consolidated lines of business and geographic orientation, and the funding models and legal entity structures of international operations. G-SIBs have adjusted their business models, especially by reducing market intensity. While G-SIBs have maintained international orientation, pressures on funding models and entity structures could affect the efficiency of capital flows through the bank channel.
Keywords: Financial crises, Central banks, Financial services, Banking systems, Financial infrastructure, International banks, Business model, Bank performance, Global Financial Stability, Regulation, WP, consumer bank, business line, GFC, geographic orientation
JEL Classification: G15, G21, L21, F39, E01, G2, F16, E52
Suggested Citation: Suggested Citation