The impact of reputation and unfair practices on banks' operation

The thesis deals with the definition of reputation and trust in banking and their importance in this segment. Various factors affecting banks' reputation are identified, namely information security, bank performance, systemic disruptions or litigation. The causes of these practices, such as human nature or opportunity, are also analysed. Following this, the effects of unfair practices on banks are examined, including fines, stricter regulation or deposit outflows. Specific cases are considered in the collapse of Credit Suisse. First, the financial health of the bank is analysed and then the individual unfair practices and their impact on deposits and the market price of the institution's shares are analysed chronologically. The most significant finding is the strong capital endowment of the bank and yet its collapse mainly due to unprofitable trades, a damaged reputation and, last but not least, deficiencies in risk management and the combination of multiple negative circumstances in the banking sector. Financial and market analyses and research are the methods used to investigate these facts.