Industry Analysis & Industry Trends
The five years through 2012-13 have been some of the most volatile in the history of the banking industry. After a period of surging revenue and profit – driven by a credit boom, strong economy and unprecedented expansion in banking operations and products – the industry was brought to its knees by the financial crisis in late 2008. As global capital markets plunged and banks stopped lending to each other, massive asset write-downs wiped out bank equity, resulting in the collapse of Northern Rock and forcing the partial nationalisation of those left standing.
The industry endured a torrid time, with revenue declining again in 2008-09, before increasing strongly in 2009-10 due to government bailouts and assistance... purchase to read more
Industry Report - Starting a New Business Chapter
The main barrier to entry into the Banks industry is regulation. Banks in the United Kingdom must be licensed by the Financial Services Authority (FSA). A number of hurdles must be cleared to obtain a licence, such as a five-year plan detailing the number of branches and funding plans; a quota of FSA-registered directors; and a significant amount of capital. The number of new licences issued annually in the past five years has been in the single digits. However, the FSA has flagged a desire to reduce barriers to entry to increase competition and perhaps decrease reliance on the major banks.
Possible strategies could mimic the US system, where banks are allowed to open as a single branch and grow from there, reducing the capital investment required... purchase to read more