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. This is the second part of her literature review…

Banking: A Dual-Strategy Model

The banking industry operates in two distinct environments: financial trading and retail savings and loans (Casu et al 2006) and this has in the past resulted in the banks developing two distinct behavioural patterns to cope with these environments: a competitive model and a cooperative model. The competitive model was suitable for environments such as the stock market, where the inhabitants agreed to fight each other for available resources. The cooperative model was more suitable for retail banking environment, where customers assume that there is a fundamental principle of honourable group-focused behaviour (King, 2010; Kennedy, 2010). Read more…