Post-Crisis Changes in Global Bank Business Models: A New Taxonomy
IMF Working Papers, December 27, 2019
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Bibliographic details
- Authors: John C Caparusso, Yingyuan Chen, Peter Dattels, Rohit Goel, Paul Hiebert
- Published: December 27, 2019
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513522883.001
Study scope and metadata
- Title: Post-Crisis Changes in Global Bank Business Models: A New Taxonomy
- Authors: John C Caparusso, Yingyuan Chen, Peter Dattels, Rohit Goel, Paul Hiebert
- Publication date: December 27, 2019
- Sample: 30 Global Systemically Important Banks (G-SIBs)
- Pages: 34
- Volume: 2019
- Issue: 295
- Series: Working Paper No. 2019/295
- DOI: https://doi.org/10.5089/9781513522883.001
- Stock No: WPIEA2019295
- ISBN: 9781513522883
- ISSN: 1018-5941
- Subjects: Banking; Financial institutions; Financial services; Financial statements; Foreign banks; Global systemically important banks; Investment banking; Public financial management (PFM)
- Keywords: a number of bank; bank business models; Bank performance; Business model; business model framework; consumer bank; Financial statements; Foreign banks; Global; Global Financial Stability; Global systemically important banks; group bank revenue; International banks; Investment banking; line-of-business model; Regulation; revenue mix; transaction bank; WP
Research goal and framework
- Proposes a novel taxonomy to identify and track business model evolution for the 30 G-SIBs.
- Taxonomy dimensions:
- Consolidated lines of business.
- Geographic orientation.
- Funding models of international operations.
- Legal entity structures of international operations.
- Data sources: Drawing from banks’ reporting.
Key findings
- G-SIBs have adjusted their business models since the Global Financial Crisis.
- A notable adjustment: reduction in market intensity across G-SIBs.
- G-SIBs have maintained international orientation.
- Pressures on funding models and legal entity structures could affect the efficiency of capital flows through the bank channel.
Analytical implications
- Tracking business model evolution requires multi-dimensional analysis covering lines of business, geography, funding, and legal-entity structure.
- Changes in funding models and entity structures have potential systemic implications by altering capital flow efficiency via banks.
Policy-relevant observations
- Regulatory and operating environment shifts after the Global Financial Crisis have materially influenced large international banks’ strategies.
- Monitoring of funding-model and legal-entity-structure adjustments is important for assessing cross-border capital flow transmission through the banking sector.
IMF Working Paper No. 2019/295 (Post-Crisis Changes in Global Bank Business Models: A New Taxonomy).
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- Working Paper