Identifying the key challenges faced by modern banks in a dynamically changing economic, regulatory, technological, and social environment, this book proposes an original concept of the banking ecosystem. In this framework, a bank is not merely a service provider but a supportive and cooperative institution capable of effectively adapting to new market and societal realities. Authored by international experts, each chapter of the book elaborates on one of the key aspects of banking operations within the new paradigm. The book presents the situation in which financial institutions face three types of changes: economic, social, and technological challenges. Chapters 1–3 focus on economic challenges, analysing capital market imperfections, and their impact on financial stability. They also examine how globalisation has influenced the structure of banking systems worldwide. Chapters 4 and 5 examine social challenges, including the financial sector’s responsibility in supporting sustainable development and adapting to environmental, social, and governance (ESG) trends. They also draw attention to the growing need to control and reduce moral hazard when concluding financial transactions. Chapters 6 and 7 address technological challenges, particularly the rapid digital transformation of e-services. The growing influence of the digital generation, combined with an ageing population, forces financial institutions to adapt their services. For each challenge, the authors present possible scenarios for financial institutions to adapt and the consequences of the choices made. Each time, recommendations for financial institutions are also formulated. In such an unstable environment and such dynamic changes, only those banks that are able to successfully adapt to theirenvironment will survive. The book will appeal to readers in economics and finance, particularly in the fields of banking, financial markets and regulations, and economic policy.