How to turn crisis into opportunity: perception and reaction to high level of uncertainty in banking industry

Purpose The purpose of this paper is to identify banks' strategies in turning uncertainty into opportunities. Design/methodology/approach Longitudinal analysis from 1990 until 2009 has been conducted to evidence factors affecting environmental uncertainty in the European banking industry and how banks have perceived and reacted to it. Findings The paper evidences banks' strategies in situations of low and medium levels of uncertainty and suggests some behavior to face a high level of crisis. Practical implications The paper defines a general framework, based on banks' perception and reaction to uncertainty, that can help banks to become champions in facing the current level of uncertainty. Originality/value The paper presents a critical analysis of how to face the enormous increase of uncertainty that the financial sector is experiencing.