Our concept of bank survival is derived from Stigler (1958), and includes any bank that did not fail, was not acquired, and was not absorbed into its parent holding company. Our concept of traditional banking is based on four hallmark characteristics of this business model: Relationship loans, core deposit funding, revenue streams from traditional banking products and services, and physical bank branches.
We define a bank as ‘traditional’ if it falls within the $500 million to $10 billion of assets size range and has higher-than-median values for three of the following four variables: Relationship loansto-assets; core deposits-to-assets; branches-to-assets; and the percentage of its operating revenues generated from traditional banking products and services. We find strong evidence that this combined set of attributes is associated with bank survival.
Interest income is the primary source of revenue at a traditional commercial bank, but it is supplemented by the fee income that the bank earns by providing noninterest financial services to its relationship banking customers. The two most traditional sources of these noninterest revenues are fees collected by the bank in exchange for providing payments services for its transactions depositors (e.g., minimum balance fees, overdraft fees) and fees collected by the bank in exchange for managing the assets of its wealthier business and household clients (i.e., fiduciary services). While modern banking companies often engage in the provision of a wide range of other financial services (e.g., investment banking, venture capital, securities brokerage, insurance underwriting), these services lay largely outside the boundaries of the traditional banking model. As our proxy for traditional activities, we use the ratio of net interest income plus traditional fee income to total bank assets (Total Traditional Income).
Neben der Niedrigzinsphase, die aus Sicht der Banker aus Warendorf und Gütersloh noch für einen längeren Zeitraum andauern wird, und steigenden Kosten durch neue gesetzliche Vorgaben, gibt es auch einen technischen Grund für die Bankenehe: Wegen der Verschmelzung der genossenschaftlichen Rechenzentren GAD und Fiducia wird in Deutschlands Volksbanken flächendeckend ein einheitliches IT-System eingeführt. Installation, Einführung und Mitarbeiterschulung dürften sich über Monate hinziehen: „Durch Teamarbeit und rationelle Aufgabenverteilung wollen wir bei diesem Großprojekt Synergien heben“, so Weishaupt. Gleichzeitig könne man Strukturen und Prozesse den neuen Bedingungen anpassen. Die Umstellung soll im April 2019 abgeschlossen sei. (Quelle: Warendorf und Bielefeld-Gütersloh. Volksbanken fusionieren)
At the other extreme, a bank can be too large to profitably establish and maintain the person-to-person relationships with depositors and borrowers that are central to the traditional banking business model. There is no extant research on the size at which banks using the traditional banking model begin to encounter diseconomies of scale