The Banking Game: Analysis of the extinction of the bank as trusted institution and NONIIs as an indicator of non-reciprocal strategies by Doreen Soutar

Abstract

The crisis in the financial markets in 2007 has drawn much attention to the way banks operate, and in particular the interaction between the trading and retail divisions. Here an evolutionary model is used as a basis to examine bank behaviour towards their customers, suggesting that banks are utilising competitive strategies in an essentially cooperative environment. The example of non-interest bearing profit-making activities is used to demonstrate this strategy, and it is suggested that current bank size and attitude towards customers threatens to render large banks with extinction.
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