Journal of
Italian
Banking
Association
year 100
Italian
Banking
Association
year 100
Archive » July - August 2014 » Bank ratings and business models: the lessons from the crisis
Bank ratings and business models: the lessons from the crisis
Vincenzo D'Apice, Giovanni Ferri, Punziana LacitignolaJuly - August 2014
Jel codes: G24, G21, G01
The financial crisis has stimulated researches on the link between risk models and banking business, showing that banks with greater profitability deriving from traditional activity have less chancee to be involved in a crisis. This hypothesis is confirmed by an analysis conducted on a sample of 106 banks operating in Europe, Usa and Japan, considering the credit ratings issued between 2006 and 2011. Results show that up to 2006 financial markets, through the rating agencies, have encouraged choices towards riskier business models while the crisis has stimulated banks to return to traditional business models
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