2014 | 2(55) | 27-37
Article title

Ethics, Banking and Ownership

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The paper analyses the notion of banking ethics and presents a simple model of risk shifting that illuminates the conflict between depositors and shareholders and presents shareholder incentives to gamble "with other peoples' money". Customer ownership through cooperative or savings bank structure solves this problem, however, these structures have problems of their own. Finally, it stresses the benefits of organizational diversity in banking, on how banks in different ownership structures may foster that diversity, and also why ownership may not be a sufficient condition for diversity.
Physical description
  • Vaasa University of Applied Sciences, Finland
  • Bülbül, D., Schmidt, R.H. and Schüwer, U., (2013): "Caisses d'epargne et banques cooperatives en Europe". Revue d'Economie Financiere, 111: 159-187.
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  • Ferri, G., Kalmi, P. and Kerola, E. (2014b): "Organizational Structure and Exposure to Crisis in European Banks: Evidence From Rating Changes". Journal of Entrepreneurial and Organizational Diversity, forthcoming.
  • Ferri, G., Kalmi, P. and Kerola, E. (2014c): "Does Bank Ownership Affect Lending Behavior? Evidence from the Euro Area". Journal of Banking and Finance (forthcoming).
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Publication order reference
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