Identification of EU Bank Business Models

52 Pages Posted: 5 Jan 2021

See all articles by Marina Cernov

Marina Cernov

European Banking Authority

Teresa Urbano

European Banking Authority

Date Written: June 21, 2018


This paper proposes a standardised classification of business models of the European Union (EU) banks. Our work is based on a rich and unique dataset collected for the first time for the full population of EU banks at individual level. The proposed approach to classification combines both a qualitative and a quantitative component, which is a new approach compared with relevant literature in business model identification and classification. The qualitative component is based on an expert knowledge of the supervisory authority, which is confirmed or challenged by quantitative indicators. Our findings are that banks’ classification through this mixed approach allows better and more granular identification of banks’ business models than the clustering methodology, which is more commonly used in the literature. The business model categorisation can provide the supervisory and regulatory authorities with a benchmark for classifying institutions for a more structured and consistent approach to regulatory impact assessment, analysing trends and risks, proportionality, and supervsion, ensuring the continuity and comparability of results over time.

Keywords: Business models, business model analysis, EU banks, clustering, regulation, impact assessment, proportionality, peer review

Suggested Citation

Cernov, Marina and Urbano, Teresa, Identification of EU Bank Business Models (June 21, 2018). European Banking Authority Research Paper No. 2, Available at SSRN: or

Marina Cernov (Contact Author)

European Banking Authority ( email )

20 avenue André Prothin CS 30154
One Canada Square, Canary Wharf
92927 Paris, La Défense CEDEX E14 5AA

Teresa Urbano

European Banking Authority ( email )

Floor 46
One Canada Square, Canary Wharf
London, E14 5AA
United Kingdom

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