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  1. 1 Ιαν 2020 · The strategic plan model proposed here for the banking sector is examined in detail through the steps towards implementing a plan leading to business improvement.

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  2. Cost eficiency is key in developing new operating models. The consistent theme that underlines many of the challenges facing the universal banking model in the coming years is cost reduction. However, traditional downsizing strategies are unlikely to be enough to deliver the cost base reductions needed.

  3. Delivers a complete novel analysis on business models in banking. Provides market participants, depositors, creditors, regulators and supervisors with a useful tool to better understand the nature of risk attached to each bank business model.

  4. The purpose of this note is three-fold: To provide a set of guidelines on how to write a business plan. To highlight what a prospective investor or banker is, and is not, looking for in such a plan. To provide a summary check list of the attributes of good business plans. The note does not provide a magic formula to be followed.

  5. Using a panel of 178 banks for the period 2005–15, we identify a retail-funded and a wholesale-funded commercial banking model that are robust to the choice of inputs. In comparison, a model emphasising trading activities and a universal banking model are less robustly identified.

  6. We identify three business models: a retail-funded commercial bank, a wholesale-funded commercial bank and a capital markets-oriented bank. The first two models differ mainly in terms of banks’ funding mix, while the third category stands out primarily because of banks’ greater engagement in trading activities.

  7. Core banking modernization refers to the replacement, upgrade, or outsourcing of a bank’s existing core banking systems and information technology (IT) environment. These systems perform mission critical operations for the

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