BANKING ACTIVITY PROFITABILITY UNDER THE IMPACT OF NEW BANKING BUSINESS MODELS

Abstract

Banking as a whole represents the link between depositors and borrowers as well as the provision of key services to facilitate consumption and promote economic growth. The new Community regulations (Basel III) concern both micro-prudential supervision (individually for banks) and macro-prudential supervision, thus periods of financial instability have led to a number of post-crisis regulations affecting the profitability of the banking sector due to changes in the business model banking. This article represents an analysis of the profit obtained by banks in correlation with the business model, dictated by community values and regulations. Any company aims to maximize profit, as well as banks in the Republic of Moldova aim to achieve high profit by fitting to the legal level of activity. Thus, banks are able to adapt perfectly to new banking requirements and models, achieving high performance in obtaining profits by capitalizing on the assets of the bank.

Keywords

• community regulations
• banking system
• profitability
• business model