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 - 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 Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). 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 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 Financial Services Authority, the precursor of the FCA and the PRA, flagged a desire to reduce barriers to entry to increase competition and perhaps decrease reliance on the major banks... purchase to read more