The report presents an interesting analysis concluding that there are entities within all business models that have failed during the crisis. The ESBG is of the opinion that although institutions from different natures and business models have suffered the effects of the crisis, generally speaking, the savings and retail banks’ business model has not engaged in those excessive risk taking practices– often in trading highly-complex instruments coupled with excessive reliance on short-term funding in the run-up to the financial crisis – that according to the Liikanen Report have been in the root of the financial crisis. Therefore, we consider that.
