BANKING BUSINESS MODEL - CURRENT TENDENCIES

Mihail GÎRLEA Universitatea de Stat din Moldova

Abstract

The modelling of a banking business plan needs to be carried out in tight correlation to the intended management scope, if the manager intends to double profit, he will thus take on a greater risk and if he intends to apply a development strategy starting from the minimization of risks, profits will be smaller but certain. Any entity survives in interdependence with the internal and external environment from which it is part of and therefore a company exists in relation to those surrounding it. From this point of view, two main tendencies may be observed in the development of a business model at the beginning of the XIIth century: the development of a durable business and corporate governance. In order to obtain enhanced efficiency, especially in the integrated markets, like the one which is specific for the European Union, banks are obliged to pay more attention to the best practices. But, in the same time, the increase of competition on these markets leads to an increase of assumed risks and these results in the regulation authorities’ practice of offering a more prominent role to capital adequacy in prudential regulation. Keywords: banking business models, statistic models, financial-banking regulation, financial stability, banking technique and practice, financial crisis, risk culture, risk identification and assessment, European integration, banking performance and risk management.