Post-Crisis Changes in Global Bank Business Models: A New Taxonomy

35 Pages Posted: 23 Jan 2020

See all articles by John Caparusso

John Caparusso

International Monetary Fund (IMF)

Yingyuan Chen

International Monetary Fund (IMF)

Peter Dattels

International Monetary Fund (IMF)

Rohit Goel

International Monetary Fund (IMF)

Paul Hiebert

European Central Bank (ECB)

Date Written: December 2019

Abstract

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

Caparusso, John and Chen, Yingyuan and Dattels, Peter and Goel, Rohit and Hiebert, Paul, Post-Crisis Changes in Global Bank Business Models: A New Taxonomy (December 2019). IMF Working Paper No. 19/295. Available at SSRN: https://ssrn.com/abstract=3524314

John Caparusso (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Yingyuan Chen

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Peter Dattels

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Rohit Goel

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Paul Hiebert

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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