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Business models of the banks in the euro area
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| Authors and Corporations: | , |
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| Title: | Business models of the banks in the euro area/ Matteo Farnè, Angelos Vouldis |
| Type of Resource: | E-Book |
| Language: | English |
| published: |
Frankfurt am Main, Germany
European Central Bank
[2017]
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| Series: |
Europäische Zentralbank: Working paper series ; no 2070 (May 2017)
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| Subjects: | |
| Source: | Verbunddaten SWB Lizenzfreie Online-Ressourcen |
| Abstract: | The paper identifies the business models followed by banks in the euro area, utilising a proprietary dataset collected in the context of the supervisory reporting of the Single Supervisory Mechanism. The concept of a 'business model' has been neglected by economic theory and is defined here with respect to the set of activities performed by banks. We adopt a clustering methodology to provide evidence for the existence of distinct business models. Clustering is combined with dimensionality reduction optimally, given the nature of our dataset which features a large number of dimensions for each bank ('fat' data). The method produces a level and a contrast factor which are intuitive in the economic sense. Four business models are identified alongside a set of 'outlier' banks that follow unique business models. The risk and performance indicators of each cluster are examined and evidence is provided that they follow distinct statistical distributions. |
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| Physical Description: | 1 Online-Ressource (circa 47 Seiten); Illustrationen |
| ISBN: |
9789289927925
9289927925 |
| DOI: | 10.2866/386225 |