[Study] Revealed: First major analyses of business models of US, Canadian and Brazilian Banks and Credit Unions

Wednesday October 12, 2016

The North and South American banking sector has come under scrutiny by an independent academic research body, with the publication of in-depth and geographically widespread analyses of the banking system with a focus on cooperative banks and credit unions.

In the aftermath of the 2007-2009 financial crash and ensuing economic crisis, three new publications on the banking business models are the first detailed analyses of its kind, covering the United States, Canada and Brazil.

The research was led by Rym Ayadi, Director of the Alphonse and Dorimène Desjardins International Institute for Cooperative, founder and Director of the International Research Centre on Cooperative Finance (IRCCF) and Professor at the Department of International Business at HEC Montreal, the renowned international business school in Montreal, Canada.  

Prof. Ayadi’s work follows the publication in January 2016 of the Banking Business Models Monitor 2015, tackling the European banking sector, which she also directed. 

This latest research was carried out against a backdrop of unprecedented upheaval in the global banking system. Decades of deregulation, the damaging 2007-9 global financial crises, including the collapse of Lehman Brothers in 2008 and the subsequent regulatory overhaul worldwide aimed to safeguard financial stability and put an end to government bailouts.

Prof. Ayadi’s investigation aims to provide the banking industry as a whole – including market professionals, depositors, creditors, regulators and supervisors - with a useful tool to better understand the nature of risk attached to various banking business models and their contribution to systemic risk throughout the economic cycle.

Referring to the combined US, Canadian and Brazilian sample, Prof. Ayadi said: “Overall, these findings give a first indication that a diverse system, as assessed using banking business models, is seemingly more resilient than a system that tends to converge towards one business model.”

On the occasion of the International Summit of Cooperatives, the main results will be presenting on Wednesday, October 12 at 2:15pm, during the Sectoral meeting 3: Banking and Financial Services. Rym Ayadi will also held a press briefing on the same day at 5:30pm in room 204AB.

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Source: Alphonse and Dorimène Desjardins International Institute for Cooperatives, HEC Montréal
 

For further press enquiries, please contact: Rym Ayadi, Professor at Department of International Business, Director of the Alphonse and Dorimène Desjardins International Institute for Cooperatives and the International Research Centre on Cooperative Finance (IRCCF), HEC Montréal. E-mail: rym.ayadi@hec.ca.