In the relationship between the firm (or any other kind of organization) and the consumer we can distinguish three alterations of trust: calculus, institutional, and personal trust. This post will explain these three alterations. Calculus trust. Calculus trust considers the information passed; the source are social experience and past own experience with the specific firm. [...]

In October this year I had the opportunity to speak at the 3rd annual world islamic retail banking conference in Dubai (U.A.E.). The topic of my presentation was “´Trust – the rediscovered condition in Western retail banking”. The three day conference (compare conference program) was held in the Shangri-La Hotel, Shaik-Zayed-Road. Here are some impressions from the [...]

The financial turmoil 2007 – 2009 represented an excellent opportunity to review and to improve regulatory requirements because the industries’ readiness to adapt and change has increased during the crisis. The first crisis has put an emphasis regarding specific gaps in how banks identify, assess, control and report risks. Today we have to answer the [...]

For the purpose of my PhD-thesis in the field of banking I have to make a lot of literature review and analysis of existing studies. Thanks to universities, teachers, research and consulting companies a pure vast of excellent information is available. In the last 3 and half years I really got used to it. However, [...]

A couple of months ago I presented a fictitious interview with the former investment bank regarding its approach to manage liquidity risks. Everything seemed to be fine…but as we know from hindsight the annual report didn’t tell us the truth (otherwise the bank would not have fall into bankruptcy). Lehman Brother was collapsed under a [...]

A banana skin may be slippery and may cause you to stumble or even fall when you Stepp on it. Hence, ‘Banking Banana Skins 2010 – After the ‘quake’  is the name of a new study from the CSFI Centre for the Study of Financial Innovation   which is sponsored by PricewaterhouseCoopers. As PwC describes it, [...]

The establishment of a single market for services and goods – including banking – has for several decades been one of Europe’s core policy objectives. The way towards these objectives is termed integration process. The benefit of integration is to offer new business opportunities in Europe for the banks through more competition and the option [...]

A couple of days ago I was involved in a discussion concerning the sense of strategy in the times of financial crisis. I think that is a very interesting question, whether organizations should “think strategically” in a situation with a very dynamic and unstable environment (e.g. like the current financial crisis and global economic recession). [...]

A large number of articles concerning the financial crisis have been published these days. In sum all write offs in financial institutions (worldwide) have reached a total of 485 billion USD this week. 42 billion USD write offs can be found among banks in Germany. The amount of recapitalization (worldwide) within banks is 459 billion [...]

In mid September we published a short post with the title “the worse is yet to come“. Now, one month later, we can observe worst case scenarios becoming reality. Black swan effects test the survivability of financial institutions. Large banks on both sides of the ocean are in very serious trouble and need massive government [...]