Commercial Bank and Investment Bank: Where Does Value Come From?

Measuring bank’s added-value is challenging. In its first part, this paper presents a definition and a method to compute added-value in the banking sector. This method highlights the respective contributions of the commercial bank and investment bank activities. It tends to show that shareholders bore the bigger part of the burden during the financial crisis. In a second part, the sound basis needed to promote the development of the banking sector are brought about with a model analyzing the different sources of value and the factors impacting them.