Bank Business Models and The Changes in CEE Countries
The aim of this article is to assess the existing
business models used by the banks operating in the CEE countries in
the time period from 2006 till 2011.
In order to obtain research results, the authors performed
qualitative analysis of the scientific literature on bank business
models, which have been grouped into clusters that consist of such
components as: 1) capital and reserves; 2) assets; 3) deposits, and 4)
loans.
In their turn, bank business models have been developed based on
the types of core activities of the banks, and have been divided into
four groups: Wholesale, Investment, Retail and Universal Banks.
Descriptive statistics have been used to analyse the models,
determining mean, minimal and maximal values of constituent
cluster components, as well as standard deviation. The analysis of
the data is based on such bank variable indices as Return on Assets
(ROA) and Return on Equity (ROE).
[1] E. Abrahamson, "Change without pain". Harvard Business Review, vol.
4, no.78, pp.75-79, 2000.
[2] Komsomolskaya Pravda, Online June 2006 <http://kompravda.eu>.
[3] M.T. Billett, M.J. Flannery, J. A. Garfinkel, "The effect of lender
identity on a borrowing firm-s equity return". Journal of Finance,
vol.50, pp.699-718, 1995.
[4] T. Beck, D. Coyle, M. Dewatripont, X. Freixas and P. Seabright,
"Bailing Out the Banks: Reconciling Stability and Competition". Center
for Economic and Policy Research (CEPR), 2010.
[5] G. Tumpel-Gugerell, "Business models in banking - is there a best
practice?". Bank for International Settlements (BIS) Review, vol.111,
September 2009.
[6] V. Beattie, K. Pratt, "what users want?". Voluntary annual report,
Institute of Chartered Accountants of Scotland, 2002.
[7] S. Ryan, Financial instruments and institutions: Accounting and
disclosure rules. Wiley, 2007.
[8] T. Tverijons, ÔÇ×Bankas pieteiku┼ías karu "─ônu" ekonomikai". Baltic News
Network Online 24 September 2010. 24 September 2010
<http://bnn.lv/tverijons-bankas-pieteikusas-karu-
%C2%ABenu%C2%BB-ekonomikai-5689>.
[9] Bank for International Settlements (BIS), "Basel III: A global regulatory
framework for more resilient banks and banking systems", 2011.
[10] J. Leach, S. Hall, K. Ott, H. Kelly, "Basel 3- Time for banks to engage".
KPMG report, December 2010.
[11] D.C. Wheelock and P.W. Wilson, "Why do Banks Disappear? The
Determinants of U.S. bank Failures and Acquisitions". Review of
Economics and Statistics, vol.82, pp. 127-138, 2000.
[12] A. Boot and A.V. Thakor, "The Accelerating Integration of Banks and
Markets and its Implications for Regulation", in A. Berger, P. Molyneux
and J. Wilson (eds.). The Oxford Handbook of Banking, 2010.
[13] L. Laeven and R. Levine, "Bank Governance, Regulation and Risktaking",
Journal of Financial Economics, vol. 93, no. 2, pp. 259-275,
2010.
[14] K.J Stiroh, K.J., "Diversification in Banking: Is Non-interest Income the
Answer?". Journal of Money, Credit, and Banking, vol. 36, pp. 853-882,
2004.
[15] M. Argosh, "A New Business Model for Banks". Organic Growth
Partners (OGP), February 2012.
[16] R.G. Rajan, "Insiders and outsiders: The choice between informed and
arm`s-length debt". Journal of Finance, vol. 47, no. 4, pp.1367ÔÇö1400,
1992.
[17] A. Haldane, "Rethinking the Financial Network". Bank for International
Settlements (BIS) Review, vol.53, April 2009.
[18] F.S. Fremerey and Jan U. Hagen, "European Banks: The Way Forward
Toward Resilient Business Models", Business Brief, No.BB-110-001,
ESMT European School of Management and Technology, 2010.
[19] K.W Lee and I.G. Sharpe, "Does a bank-s loan screening and monitoring
matter?". Journal of Financial Services Research, vol. 35, pp. 33-52,
2009.
[20] E.J. Kane, "Ethical Failures in Regulating and Supervising the Pursuit of
Safety- Net Subsidies", European Business Organization Law Review,
vol. 10, pp. 185-211, June 2009.
[21] Association of Commercial Banks of Latvia, Indices of bank activities in
Q4 of 2011 Online February 2012 <htpp://www.bankasoc.lv>.
[22] Financial and Capital Market Commission, Bank Statistical data Online
February 2012 <www.fktk.lv>.
[1] E. Abrahamson, "Change without pain". Harvard Business Review, vol.
4, no.78, pp.75-79, 2000.
[2] Komsomolskaya Pravda, Online June 2006 <http://kompravda.eu>.
[3] M.T. Billett, M.J. Flannery, J. A. Garfinkel, "The effect of lender
identity on a borrowing firm-s equity return". Journal of Finance,
vol.50, pp.699-718, 1995.
[4] T. Beck, D. Coyle, M. Dewatripont, X. Freixas and P. Seabright,
"Bailing Out the Banks: Reconciling Stability and Competition". Center
for Economic and Policy Research (CEPR), 2010.
[5] G. Tumpel-Gugerell, "Business models in banking - is there a best
practice?". Bank for International Settlements (BIS) Review, vol.111,
September 2009.
[6] V. Beattie, K. Pratt, "what users want?". Voluntary annual report,
Institute of Chartered Accountants of Scotland, 2002.
[7] S. Ryan, Financial instruments and institutions: Accounting and
disclosure rules. Wiley, 2007.
[8] T. Tverijons, ÔÇ×Bankas pieteiku┼ías karu "─ônu" ekonomikai". Baltic News
Network Online 24 September 2010. 24 September 2010
<http://bnn.lv/tverijons-bankas-pieteikusas-karu-
%C2%ABenu%C2%BB-ekonomikai-5689>.
[9] Bank for International Settlements (BIS), "Basel III: A global regulatory
framework for more resilient banks and banking systems", 2011.
[10] J. Leach, S. Hall, K. Ott, H. Kelly, "Basel 3- Time for banks to engage".
KPMG report, December 2010.
[11] D.C. Wheelock and P.W. Wilson, "Why do Banks Disappear? The
Determinants of U.S. bank Failures and Acquisitions". Review of
Economics and Statistics, vol.82, pp. 127-138, 2000.
[12] A. Boot and A.V. Thakor, "The Accelerating Integration of Banks and
Markets and its Implications for Regulation", in A. Berger, P. Molyneux
and J. Wilson (eds.). The Oxford Handbook of Banking, 2010.
[13] L. Laeven and R. Levine, "Bank Governance, Regulation and Risktaking",
Journal of Financial Economics, vol. 93, no. 2, pp. 259-275,
2010.
[14] K.J Stiroh, K.J., "Diversification in Banking: Is Non-interest Income the
Answer?". Journal of Money, Credit, and Banking, vol. 36, pp. 853-882,
2004.
[15] M. Argosh, "A New Business Model for Banks". Organic Growth
Partners (OGP), February 2012.
[16] R.G. Rajan, "Insiders and outsiders: The choice between informed and
arm`s-length debt". Journal of Finance, vol. 47, no. 4, pp.1367ÔÇö1400,
1992.
[17] A. Haldane, "Rethinking the Financial Network". Bank for International
Settlements (BIS) Review, vol.53, April 2009.
[18] F.S. Fremerey and Jan U. Hagen, "European Banks: The Way Forward
Toward Resilient Business Models", Business Brief, No.BB-110-001,
ESMT European School of Management and Technology, 2010.
[19] K.W Lee and I.G. Sharpe, "Does a bank-s loan screening and monitoring
matter?". Journal of Financial Services Research, vol. 35, pp. 33-52,
2009.
[20] E.J. Kane, "Ethical Failures in Regulating and Supervising the Pursuit of
Safety- Net Subsidies", European Business Organization Law Review,
vol. 10, pp. 185-211, June 2009.
[21] Association of Commercial Banks of Latvia, Indices of bank activities in
Q4 of 2011 Online February 2012 <htpp://www.bankasoc.lv>.
[22] Financial and Capital Market Commission, Bank Statistical data Online
February 2012 <www.fktk.lv>.
@article{"International Journal of Business, Human and Social Sciences:50122", author = "I. Erins and J. Erina", title = "Bank Business Models and The Changes in CEE Countries", abstract = "The aim of this article is to assess the existing
business models used by the banks operating in the CEE countries in
the time period from 2006 till 2011.
In order to obtain research results, the authors performed
qualitative analysis of the scientific literature on bank business
models, which have been grouped into clusters that consist of such
components as: 1) capital and reserves; 2) assets; 3) deposits, and 4)
loans.
In their turn, bank business models have been developed based on
the types of core activities of the banks, and have been divided into
four groups: Wholesale, Investment, Retail and Universal Banks.
Descriptive statistics have been used to analyse the models,
determining mean, minimal and maximal values of constituent
cluster components, as well as standard deviation. The analysis of
the data is based on such bank variable indices as Return on Assets
(ROA) and Return on Equity (ROE).", keywords = "Banks, Business model, CEE, ROA, ROE.", volume = "7", number = "3", pages = "552-5", }
