Rather, the “model banks” that are active in the market – in other words, banks that use a model approved by the supervisors – benefited from a sharp rise in their trading volume, albeit with marked institution-specific differences.
Rather than looking at a current “snapshot”, the longer-term averages and comparing them with other institutions can tell us more about business models, risk preferences and trading strategies. And here, too, I cannot fail to note that the risk-adjusted trading results of the Landesbanken sector are structurally – that is on a longer-term average – well below those of the other “model banks”.