European Banks after the Global Financial Crisis: Peak Accumulated Losses, Twin Crises and Business Models

2018 ◽  
Author(s):  
Jan Kakes ◽  
Leo <!>de Haan
Keyword(s):  
Financial Crisis ◽  
Business Models ◽  
Global Financial Crisis ◽  
European Banks ◽  
Twin Crises ◽  
Accumulated Losses ◽  
The Global Financial Crisis

scholarly journals Inefficiency patterns in family-owned banks in Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mette Asmild ◽  
Dorte Kronborg ◽  
Tasmina Mahbub ◽  
Kent Matthews
Keyword(s):  
Financial Crisis ◽  
Business Models ◽  
Global Financial Crisis ◽  
Time Window ◽  
Management Practice ◽  
Data Set ◽  
Content Type ◽  
Empirical Results ◽  
The Difference ◽  
The Global Financial Crisis

PurposeMulti-directional efficiency analysis (MEA) is an alternative methodology to data envelopment analysis (DEA) that investigates the improvement potentials in each input and output dimension and identifies a benchmark proportional to these potential improvements. This results in a more nuanced picture of the sources of the inefficiency providing opportunities for additional conclusions about which variables the inefficiency is mainly located on. MEA provides insights into not only the level of the inefficiency but also the patterns within the inefficiency, i.e. its sources and location. This paper applies this methodology to Bangladeshi banks to understand the differences in the inefficiency patterns between different subgroups.Design/methodology/approachThis paper analyses the difference in the pattern of inefficiency between the older family-dominated banks and the newer non-family-owned banks in Bangladesh using the recently developed MEAs technology, which enables analysis of patterns within inefficiencies rather than only levels of (in)efficiency. The empirical results show that whilst there are few significant differences in the levels of variable-specific efficiency scores between the two subgroups, there are clearer differences on the inefficiency contributions from particular outputs in most of the study period and also on most variables in the time window of 2007–2009. This finding provides clues to differences in business models and management practice between the two types of banks in Bangladesh.FindingsThe empirical results show that whilst there are few significant differences in the levels of variable-specific efficiency scores between the two subgroups (older family-dominated banks and the newer non-family-owned banks), there are clearer differences on the inefficiency contributions from particular outputs in most of the study period and also on most variables in the time window of 2007–2009, during the Global Financial Crisis (GFCs). This finding provides clues to differences in business models and management practice between the two types of banks in Bangladesh.Practical implicationsDEA is a conventional tool for benchmarking in management science. However, conventional benchmarking exercises based on DEA do not reveal significant differences in the sources of inefficiency that show differences in business models. While DEA remains the most utilized technique in the efficiency literature, we think that a more flexible and deeper analysis requires something like MEA.Originality/valueThe contribution is twofold. First, examination of performances of family-owned firms is a well-established but analysis of performances of family-dominated banks is relative scarce. Secondly, isolating the sources of inefficiency which differs between types of banks even if there is no difference in inefficiency levels is absolutely new for a complete data set of conventional banks in Bangladesh. It turns out that there are few (significant) differences between the groups in terms of the inefficiency levels, whereas clear patterns emerge in terms of differences in inefficiency contributions between family-dominated and non-family-owned banks, during the Global Financial Crisis

Favourable conditions will help global banks transform

2018 ◽  
Keyword(s):  
Economies Of Scale ◽  
Business Models ◽  
New Technologies ◽  
Global Financial Crisis ◽  
Regulatory Reform ◽  
Content Type ◽  
Regulatory Changes ◽  
European Banks ◽  
The Global Financial Crisis ◽  
Global Banks

Subject Outlook for the globally systemically important banks. Significance Ten years on from the global financial crisis, regulatory changes have been especially costly for large, interconnected banks. Reflecting these pressures, the banks are now transforming their business models to maintain and enhance their profitability, stability and supply of credit to the economy. Impacts Global banks have become more resilient in light of post-crisis regulatory reform; they will increasingly invest in new technologies. Rising forced subsidiarisation on national lines to separate banks’ investment and deposit taking arms is raising costs and altering risks. European banks are reducing their global footprint even as they consider consolidation with European peers to create economies of scale.

scholarly journals Post-Crisis Changes in Global Bank Business Models

2019 ◽  
Vol 19 (295) ◽  
Author(s):  
John Caparusso ◽  
Yingyuan Chen ◽  
Peter Dattels ◽  
Rohit Goel ◽  
Paul Hiebert
Keyword(s):  
Financial Crisis ◽  
Business Model ◽  
Capital Flows ◽  
Business Models ◽  
Global Financial Crisis ◽  
Four Dimensions ◽  
International Banks ◽  
Bank Business Models ◽  
The Global Financial Crisis ◽  
Systemically Important Banks

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.

7. The global financial crisis and the Eurozone sovereign debt crisis

2016 ◽  
pp. 101-118
Author(s):  
John Goddard ◽  
John O. S. Wilson
Keyword(s):  
Financial Crisis ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Investment Banks ◽  
Sovereign Debt Crisis ◽  
Mortgage Backed Securities ◽  
The Us ◽  
European Banks ◽  
The Global Financial Crisis

‘The global financial crisis and the Eurozone sovereign debt crisis’ describes the chain of events in the US financial crisis that then triggered the Eurozone banking collapse. It outlines the problems in US mortgage-backed securities, the collapse of three of the ‘big five’ investment banks (Bear Stearns, Lehman Brothers, and Merrill Lynch), and the actions of the US Federal Reserve and the Treasury. Several major European banks also foundered at the height of the financial crisis as a consequence of the US crisis and, by the end of 2014, five Eurozone member countries—Ireland, Greece, Spain, Portugal, and Cyprus—had received bailout loans from the EU and International Monetary Fund, conditional on the implementation of tough austerity measures.

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