We adapt structural models of default risk to take into account the special nature of bank assets. The usual assumption of log-normally distributed asset values is not appropriate for banks. Typical bank assets are risky debt claims, which implies that they embed a short put option on the...

1. Introduction2. Changing Role of Banks in the Financial System3. Defining a Business Model in Banks4. Identification of Business Models5. Bank Business Models and Financial Stability Assessment6. Business Models, Ownership, Organisational Structures and Size7. Migration of Business Models8....