Bank business models, diversity and the future of regulation

In recent decades, there has been a discernible trend toward the homogenisation of banking models, favouring the ‘shareholder-value’ banks. In the aftermath of the crisis, this model is being called into question and the merits of alternative ‘stakeholder value’ models are being considered.

On December 8th, CEPS and ECRI co-hosted a conference on the impact of a new capital regulation (CRDIV) and other regulations on diversity in the banking sector. Banks acted as a shock-absorber during the financial crisis. The European Commission has taken notice of this added value alternative ownership and business models, and announced the setting up of a Task Force on bank structures. Nevertheless, the CRDIV tends to follow a ‘one size fits all’ approach. The representatives of the ‘stakeholder value’ banks stressed that this creates problems for maintaining their business structures and ownership types.

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