Economic Objectives of Banks

  • Franco Fiordelisi
  • Philip Molyneux
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


This chapter analyses the economic objectives of banks. As explained in Chapter 1, managing to create sustained and sustainable shareholder value is currently one of the main objectives in European banking. Although this view appears popular among managers and academics, it cannot be taken for granted and it may not be accepted under some circumstances. Shareholder-value maximisation implies an increase of dividends and/or of share prices: the general view that managers primarily concentrate on these targets can be subject to various criticisms.


Transaction Cost Customer Satisfaction Share Price Customer Loyalty Economic Objective 
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Copyright information

© Franco Fiordelisi and Philip Molyneux 2006

Authors and Affiliations

  • Franco Fiordelisi
    • 1
  • Philip Molyneux
    • 2
  1. 1.University of Rome IIIRomeItaly
  2. 2.University of WalesBangorUK

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