Purpose – The purpose of this paper is to do an empirical analysis assessing whether banks highly involved into trading activities show specific business model choices. Key factors in the analysis are a proper measure for trading activities and a consistent classification of banks in terms of...

After the financial crisis financial regulators increased banks’ capital adequacy ratios (CET1/RWA) requirements in order to make the financial system more resilient. The new capital requirements could be achieved through different channels, some of which might affect bank’s ability to...