Download or read book Bank Profitability and Financial Stability written by Ms.TengTeng Xu and published by International Monetary Fund. This book was released on 2019-01-11 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the role of non-interest income and retail-oriented business models. We then conduct panel regression analysis to examine the empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for 431 publicly traded banks (U.S., advanced Europe, and GSIBs) from 2004 to 2017. Results reveal that profitability is negatively associated with both a bank’s contribution to systemic risk and its idiosyncratic risk, and an over-reliance on non-interest income, wholesale funding and leverage is associated with higher risks. Low competition is associated with low idiosyncratic risk but a high contribution to systemic risk. Lastly, the problem loans ratio and the cost-to-income ratio are found to be key factors that influence bank profitability. The paper’s findings suggest that policy makers should strive to better understand the source of bank profitability, especially where there is an over-reliance on market-based non-interest income, leverage, and wholesale funding.

Download or read book Why Business Models Matter written by Joan Magretta and published by . This book was released on 2002 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Post Crisis Changes in Global Bank Business Models A New Taxonomy written by Mr.John C Caparusso and published by International Monetary Fund. This book was released on 2019-12-27 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Global Financial Crisis unleashed changes in the operating and regulatory environments for large international banks. This paper proposes a novel taxonomy to identify and track business model evolution for the 30 Global Systemically Important Banks (G-SIBs). Drawing from banks’ reporting, it identifies strategies along four dimensions –consolidated lines of business and geographic orientation, and the funding models and legal entity structures of international operations. G-SIBs have adjusted their business models, especially by reducing market intensity. While G-SIBs have maintained international orientation, pressures on funding models and entity structures could affect the efficiency of capital flows through the bank channel.

Download or read book Banking Business Models written by Rym Ayadi and published by Springer. This book was released on 2019-04-23 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a result of several years of research to provide readers with a novel and comprehensive analysis on business models in banking, essential to understanding bank businesses pre- and post- financial crisis and how they evolve in the financial system. This book will provide depositors, creditors, credit rating agencies, investors, regulators, supervisors, and other market participants with a comprehensive analytical framework and analysis to better understand the nature of risk attached to the bank business models and its contribution to systemic risk throughout the economic cycle. The book will also guide post-graduate students and researchers delving into this topic.

Download or read book Business Models and Strategic Management written by Francine Newth and published by Business Expert Press. This book was released on 2012-12-11 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt: Finally, a book comes along that provides a unique yet simple and powerful approach to understand the business model and the critical role strategic management has in supporting it. Its value is in business model thinking. It brings you a combination of the best contributions of academe and industry that will help build business model-centric organizations. Inside, you’ll learn about strategy from a business model perspective. What does that mean? It means that you’ll first have to think rigorously about your value proposition; your current or future competencies; and your revenue streams and cost structure before developing, adopting, or modifying your strategies. What is the difference between a business model and a strategy? A business model is how a company operates, and a strategy is how a company competes. When the basis of competition changes because a new model disrupts the economics in the industry, it requires an adjustment in business models before any new strategy can work. This book adds a business model level to the traditional strategic management process that is more consistent with current “real-world” practices in strategic thinking and analysis. It takes you deeper into the intricacies of what constitutes a business model and how current strategy derives from it, and offers 7 modules that will show you the key components to manage your business model, to help conduct business model analysis, and to assess the financial viability of a business model, just to name a few.

Download or read book Business model and profitability in the banking strategy written by Melania Franzese and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Business Models in European Banking written by Rym Ayadi and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The next few years will be critical for Europe's banking industry. It faces a number of financial sector reforms that will have a decisive impact on the dominant practices and business models followed across the European Union. This timely volume presents the results of the first screening exercise conducted on the performance, stability, risk, efficiency, and corporate governance of twenty-six major European banks--before, during, and after the financial crisis. The authors use those findings to help identify the key strengths and weaknesses inherent in the dominant business models, in light of the upcoming regulatory changes.

Download or read book Profit First written by Mike Michalowicz and published by Penguin. This book was released on 2017-02-21 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: Author of cult classics The Pumpkin Plan and The Toilet Paper Entrepreneur offers a simple, counterintuitive cash management solution that will help small businesses break out of the doom spiral and achieve instant profitability. Conventional accounting uses the logical (albeit, flawed) formula: Sales - Expenses = Profit. The problem is, businesses are run by humans, and humans aren't always logical. Serial entrepreneur Mike Michalowicz has developed a behavioral approach to accounting to flip the formula: Sales - Profit = Expenses. Just as the most effective weight loss strategy is to limit portions by using smaller plates, Michalowicz shows that by taking profit first and apportioning only what remains for expenses, entrepreneurs will transform their businesses from cash-eating monsters to profitable cash cows. Using Michalowicz's Profit First system, readers will learn that: · Following 4 simple principles can simplify accounting and make it easier to manage a profitable business by looking at bank account balances. · A small, profitable business can be worth much more than a large business surviving on its top line. · Businesses that attain early and sustained profitability have a better shot at achieving long-term growth. With dozens of case studies, practical, step-by-step advice, and his signature sense of humor, Michalowicz has the game-changing roadmap for any entrepreneur to make money they always dreamed of.

Download or read book Bank Profitability and Risk Taking written by Natalya Martynova and published by International Monetary Fund. This book was released on 2015-11-25 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditional theory suggests that more profitable banks should have lower risk-taking incentives. Then why did many profitable banks choose to invest in untested financial instruments before the crisis, realizing significant losses? We attempt to reconcile theory and evidence. In our setup, banks are endowed with a fixed core business. They take risk by levering up to engage in risky ‘side activities’(such as market-based investments) alongside the core business. A more profitable core business allows a bank to borrow more and take side risks on a larger scale, offsetting lower incentives to take risk of given size. Consequently, more profitable banks may have higher risk-taking incentives. The framework is consistent with cross-sectional patterns of bank risk-taking in the run up to the recent financial crisis.

Download or read book International Monetary Fund Annual Report 2017 written by International Monetary Fund and published by International Monetary Fund. This book was released on 2017-10-05 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the past financial year, the IMF’s 189 member countries faced a number of pressing challenges. IMF work on these challenges - slower trade, declining productivity, gender inequality, inclusive growth, and debt management - is a central focus of this 2017 Annual Report.

Download or read book Pricing and Profitability Management written by Julie Meehan and published by John Wiley & Sons. This book was released on 2011-06-28 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: The practical guide to using pricing and profitability management to build a better business A comprehensive reference for any business professional looking to understand the capabilities and competencies required for effectively managing pricing and profitability, Pricing and Profitability Management explains how to determine the right approach, tools, and techniques for each of six key categories (pricing strategy, price execution, advanced analytics and optimization, organizational alignment and governance, pricing technology and data management, and tax and regulatory effectiveness). Exploring each category in detail, the book addresses how an integrated approach to pricing improvement can give a sustainable, competitive advantage to any organization. The ultimate "how to" manual for any executive or manager interested in price management, the book presents a holistic, comprehensive framework that shows how integrating these pricing categories into a cohesive program leads to impressive gains that cannot be achieved through a single-pronged approach. Presents a comprehensive framework for more effectively managing pricing and profitability Identities the six key categories of pricing and profitability management Shows you how to gain a competitive edge by managing pricing and profitability Taking a comprehensive view of pricing, companies can position themselves to tap a vast source of shareholder value—the ability to set and enforce profitable prices, not just once, but again and again in response to marketplace changes and evolving business needs—and this book will show you how.

Download or read book Evolving Business Models written by Christoph Franz and published by Springer. This book was released on 2017-05-09 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book addresses the core challenges currently faced by traditional companies. In the age of digitization many industries are now challenged by disruptions of the traditional value chain: new competitors are coming into play, traditional products don’t sell any more, and profits are at risk. As such, CEOs need to adopt new business models for these established industries, while many companies have to reinvent themselves by developing new products for new markets. In this book, leading CEOs share their experiences in transforming established companies. They provide insights on transforming industries and demonstrate what it takes to redefine companies from the ground up. Issues such as organizational transformation, new product development, implementing a new organizational spirit, and many more are discussed.

Download or read book Determinants of Commercial Bank Interest Margins and Profitability written by Asl? Demirgüç-Kunt and published by World Bank Publications. This book was released on 1998 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: March 1998 Differences in interest margins reflect differences in bank characteristics, macroeconomic conditions, existing financial structure and taxation, regulation, and other institutional factors. Using bank data for 80 countries for 1988-95, Demirgüç-Kunt and Huizinga show that differences in interest margins and bank profitability reflect various determinants: * Bank characteristics. * Macroeconomic conditions. * Explicit and implicit bank taxes. * Regulation of deposit insurance. * General financial structure. * Several underlying legal and institutional indicators. Controlling for differences in bank activity, leverage, and the macroeconomic environment, they find (among other things) that: * Banks in countries with a more competitive banking sector-where banking assets constitute a larger share of GDP-have smaller margins and are less profitable. The bank concentration ratio also affects bank profitability; larger banks tend to have higher margins. * Well-capitalized banks have higher net interest margins and are more profitable. This is consistent with the fact that banks with higher capital ratios have a lower cost of funding because of lower prospective bankruptcy costs. * Differences in a bank's activity mix affect spread and profitability. Banks with relatively high noninterest-earning assets are less profitable. Also, banks that rely largely on deposits for their funding are less profitable, as deposits require more branching and other expenses. Similarly, variations in overhead and other operating costs are reflected in variations in bank interest margins, as banks pass their operating costs (including the corporate tax burden) on to their depositors and lenders. * In developing countries foreign banks have greater margins and profits than domestic banks. In industrial countries, the opposite is true. * Macroeconomic factors also explain variation in interest margins. Inflation is associated with higher realized interest margins and greater profitability. Inflation brings higher costs-more transactions and generally more extensive branch networks-and also more income from bank float. Bank income increases more with inflation than bank costs do. * There is evidence that the corporate tax burden is fully passed on to bank customers in poor and rich countries alike. * Legal and institutional differences matter. Indicators of better contract enforcement, efficiency in the legal system, and lack of corruption are associated with lower realized interest margins and lower profitability. This paper-a product of the Development Research Group-is part of a larger effort in the group to study bank efficiency.

Download or read book How to Write a Great Business Plan written by William A. Sahlman and published by Harvard Business Review Press. This book was released on 2008-03-01 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: Judging by all the hoopla surrounding business plans, you'd think the only things standing between would-be entrepreneurs and spectacular success are glossy five-color charts, bundles of meticulous-looking spreadsheets, and decades of month-by-month financial projections. Yet nothing could be further from the truth. In fact, often the more elaborately crafted a business plan, the more likely the venture is to flop. Why? Most plans waste too much ink on numbers and devote too little to information that really matters to investors. The result? Investors discount them. In How to Write a Great Business Plan, William A. Sahlman shows how to avoid this all-too-common mistake by ensuring that your plan assesses the factors critical to every new venture: The people—the individuals launching and leading the venture and outside parties providing key services or important resources The opportunity—what the business will sell and to whom, and whether the venture can grow and how fast The context—the regulatory environment, interest rates, demographic trends, and other forces shaping the venture's fate Risk and reward—what can go wrong and right, and how the entrepreneurial team will respond Timely in this age of innovation, How to Write a Great Business Plan helps you give your new venture the best possible chances for success.

Download or read book Business Model Generation written by Alexander Osterwalder and published by John Wiley & Sons. This book was released on 2013-02-01 with total page 295 pages. Available in PDF, EPUB and Kindle. Book excerpt: Business Model Generation is a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow's enterprises. If your organization needs to adapt to harsh new realities, but you don't yet have a strategy that will get you out in front of your competitors, you need Business Model Generation. Co-created by 470 "Business Model Canvas" practitioners from 45 countries, the book features a beautiful, highly visual, 4-color design that takes powerful strategic ideas and tools, and makes them easy to implement in your organization. It explains the most common Business Model patterns, based on concepts from leading business thinkers, and helps you reinterpret them for your own context. You will learn how to systematically understand, design, and implement a game-changing business model--or analyze and renovate an old one. Along the way, you'll understand at a much deeper level your customers, distribution channels, partners, revenue streams, costs, and your core value proposition. Business Model Generation features practical innovation techniques used today by leading consultants and companies worldwide, including 3M, Ericsson, Capgemini, Deloitte, and others. Designed for doers, it is for those ready to abandon outmoded thinking and embrace new models of value creation: for executives, consultants, entrepreneurs, and leaders of all organizations. If you're ready to change the rules, you belong to "the business model generation!"

Download or read book Implementing New Business Models in For Profit and Non Profit Organizations Technologies and Applications written by Chen, Te Fu and published by IGI Global. This book was released on 2010-12-31 with total page 395 pages. Available in PDF, EPUB and Kindle. Book excerpt: As technology continues to evolve, existing business models become limited with respect to complexity and speed. Accordingly, significant transformation has shaped the economy and business environments in recent decades. Implementing New Business Models in For-Profit and Non-Profit Organizations: Technologies and Applications provides relevant theoretical frameworks and the latest empirical research findings on a new platform of business models and then explores the relationship between the new Business 2.0 alliance and Web 2.0.

Download or read book Strategy Beyond the Hockey Stick written by Chris Bradley and published by John Wiley & Sons. This book was released on 2018-02-06 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: Beat the odds with a bold strategy from McKinsey & Company "Every once in a while, a genuinely fresh approach to business strategy appears" —legendary business professor Richard Rumelt, UCLA McKinsey & Company's newest, most definitive, and most irreverent book on strategy—which thousands of executives are already using—is a must-read for all C-suite executives looking to create winning corporate strategies. Strategy Beyond the Hockey Stick is spearheading an empirical revolution in the field of strategy. Based on an extensive analysis of the key factors that drove the long-term performance of thousands of global companies, the book offers a ground-breaking formula that enables you to objectively assess your strategy's real odds of future success. "This book is fundamental. The principles laid out here, with compelling data, are a great way around the social pitfalls in strategy development." —Frans Van Houten, CEO, Royal Philips N.V. The authors have discovered that over a 10-year period, just 1 in 12 companies manage to jump from the middle tier of corporate performance—where 60% of companies reside, making very little economic profit—to the top quintile where 90% of global economic profit is made. This movement does not happen by magic—it depends on your company's current position, the trends it faces, and the big moves you make to give it the strongest chance of vaulting over the competition. This is not another strategy framework. Rather, Strategy Beyond the Hockey Stick shows, through empirical analysis and the experiences of dozens of companies that have successfully made multiple big moves, that to dramatically improve performance, you have to overcome incrementalism and corporate inertia. "A different kind of book—I couldn't put it down. Inspiring new insights on the facts of what it takes to move a company's performance, combined with practical advice on how to deal with real-life dynamics in management teams." —Jane Fraser, CEO, Citigroup Latin America