Industry Analysis & Industry Trends
The past five years 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, a strong economy and an 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 banks' equity, resulting in the collapse of Northern Rock and forcing the partial nationalisation of those left standing.
Banks have endured a torrid time, with revenue declining in 2008-09 before increasing strongly in 2009-10 thanks to government bailouts and assistance... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Banks industry is in the mature phase of its life cycle. One of the main indicators of this is the already high level of private sector debt in the United Kingdom, which, relative to the size of the economy, is among the highest in the world. This indicates that the market for loans is near saturation point, with little scope for additional borrowing by consumers or businesses. However, the stabilising economic conditions and government initiatives are expected propel growth over the coming period, although at a relatively slow pace.
The industry's contribution to the economy is expected to grow at a compound annual rate of 2.8% over the 10 years through 2019-20, while the economy is expected to grow at 2.1% over the same period... purchase to read more