I try to keep up at least a weekly publishing schedule outside of holidays to remind readers that I exist. This unfortunately means that I need to do placeholder pieces like this one. Since I generally want to avoid wasting my readers’ time, I keep such articles short.
"We identify three business models: a retail-funded commercial bank, a wholesale-funded commercial bank and a capital markets-oriented bank. The first two models differ mainly in terms of banks' funding mix, while the third category stands out primarily because of banks' greater engagement in trading activities. On average, retail-focused commercial banks exhibit the least volatile earnings, while wholesale funded commercial banks are the most efficient. On the other hand, trading banks struggle to consistently outperform the other two business types."
https://www.bis.org/publ/qtrpdf/r_qt1412g.htm
BIS Quarterly Review December 2014
'Bank Business Models'
"We identify three business models: a retail-funded commercial bank, a wholesale-funded commercial bank and a capital markets-oriented bank. The first two models differ mainly in terms of banks' funding mix, while the third category stands out primarily because of banks' greater engagement in trading activities. On average, retail-focused commercial banks exhibit the least volatile earnings, while wholesale funded commercial banks are the most efficient. On the other hand, trading banks struggle to consistently outperform the other two business types."
Thanks for the reference.