Universal Banking, Universal Cultures

Patrick McConnell

This chapter will provide a description of the prevailing business model of international banking, that of universal banking, and the benefits and risks inherent in that model. It also discusses the complex concept of “culture” and describes some models of organisational culture.

UNIVERSAL BANKING

What is a universal bank? For a start, it is big and it is broad. Big in terms of the size of its assets and broad in terms of the markets it operates in and the products and services it offers. Table 4.1 shows the 12 largest banks in the world in 2014,¹¹   Much of the information in this chapter is taken from lists collated by specialist firms such as www.relbanks.com and/or financial publishers such as Euromoney. It should be noted that of the top 30 banks in such lists, all but one (Japan Post) are universal banks. all of which have assets over US$2 trillion and are all universal banks. In an example of how markets change over time,²²   It should be noted that positions in such league tables vary considerably year by year since, for example, currency exchange rates change and economies such as China emerge and grow. the largest bank in the world in 2014 was the Industrial &