Effects of Regulatory Change on European Banks: a Case Study on the Strategy and Stock Market Performance of Lloyds
نویسندگان
چکیده
This research project will present a qualitative and quantitative account of how Lloyds Bank emerged as the strongest UK bank in the 1990s -after being the weakest ten years earlier. Through a case study approach the research presents the genesis and performance of Lloyds Bank’s response to new growth opportunities. Through econometric analysis (i.e. an event study) the research evaluates the strategic intent of Lloyds’ managers but within the stock market context upon which that intent was published and pursued. The research results illustrate a bank achieving a dominant market position based on a strategy of geographic specialisation, product diversification, customer group diversification, creation of shareholder value and cost reduction. The bank's strategy favours withdrawal from global markets and consolidation of business lines to approach a climate of increasingly uncertain results from competitive strategy. Econometric analysis highlights a short-term perspective of Lloyds’ strategy by stock market participants.
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