Page 20 - EBA 2013.2869 Risk Assesment Report final proof4

Basic HTML Version

E U R O P E A N B A N K I N G A U T H O R I T Y
18
0 % 20 % 40 % 60 % 80 %
You envisage making material changes to your bank’s business model going
forward
a.If yes, business lines to be scaled down would be:
1. Secondary markets
2. Investment banking/trading across the board
3. Trade finance.
4. Other wholesale lending (international leasing, shipping, etc.)
5. Non-domestic activities outside the EU
6. Non-domestic activities within the EU
7. Project finance/public sector
8. Domestic:
a.Corporate lending
b. SME lending
c. Consumer credit
d. CRE
e. Residential mortgages
Jun 2013 — Agree
or somewhat agree
Dec 2012 — Agree
or somewhat agree
Jun 2012 — Agree
or somewhat agree
Figure 8: Changes to business model (
source:
RAQ)
The length of the bars shows the percentage of respondents who agreed or somewhat agreed with the statement on the y-axis.
0 % 20 % 40 % 60 % 80 %
a. Your business model has been witnessing some material adjustments in recent years,
both due to the initial financial crisis and to the subsequent EU sovereign crisis.
b. If you (somewhat) disagree, it is because:
€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ i. Your existing business model has proved to be
recession-proof and did not need meaningful alteration
€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ ii. Your main markets have not been materially
affected by the sovereign crisis
c. If you (somewhat) agree the changes so far have been driven by:
€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ i. Changes in market structure and dynamics
€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ ii. Regulatory changes (e.g., Basel II, V/CRD III)
€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ iii. National supervisory recommendations
€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ iv. Funding challenges
€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ v. Capital constraints
€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ vi. Earnings pressure
€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ vii. Some or all the above
Jun 2013 — Agree
or somewhat agree
Dec 2012 — Agree
or somewhat agree
Jun 2012 — Agree
or somewhat agree
Figure 9: Business model adjustments (
source:
RAQ)
The length of the bars shows the percentage of respondents who agreed or somewhat agreed with the statement on the y-axis.