The Evolution of Banking Business Models

Olivier De Bandt * Directeur de l'Économie et de la Coopération internationale, Banque de France.Contact : olivier.debandt@banque-france.fr.
Sébastien FRAPPA ** Adjoint au chef du Service d'analyse des risques bancaires, Autorité de contrôle prudentiel et de résolution (ACPR). Contact : sebastien.frappa@acpr.banque-france.fr.Les opinions exprimées dans cet article n'engagent que les auteurs et ne correspondent pas forcément à la position de la Banque de France ou de l'ACPR. Les auteurs remercient Julia Schmidt pour ses commentaires et Mary Everett pour la fourniture des données sur les GSIB européennes.


The article analyses the evolution of banking business models in developed countries over the last 40 years and shows that after the rapid growth of banking activities induced by the deregulation starting in the 80s, the 2008-9 crisis has triggered significant changes in favour of more traditional and less market-oriented models. At the same time, after the increase in cross border exposures before the 2008-9 crisis, internationally oriented business models have been adversely affected by the crisis and the regulatory response has increased convergence. But some differences remain among banks, with some systemic institutions (GSIB or Global Systemically Important Institutions) that have continued their internationalisation. Overall, the relative profitability of universal or more specialised models has varied over time: the performance of retail and universal banking models has improved in the aftermath of the crisis, but they still face some challenges.


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