... this has had on bank business models and risk-taking incentives. Section II reviews the literature on business models and bank risk, while Section III describes the model, data sources, and how ... business models, could have helped in the early identification of hidden risks, which would only materialize in the long-term or in the event of a substantial shock. II. Bank risk and business models: ... the existing literature linking specific aspects of bank business models with risk. We structure the review by grouping business models into four main broad categories, used later in our empirical...