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 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 in 2008-09 before increasing strongly in 2009-10, thanks to government bailouts and assistance... purchase to read more
Industry Report - Industry Products Chapter
Banks generate revenue by charging interest on loans and by charging fees to administer, maintain and process loans, transactions and bank accounts. They pay interest to the depositors and wholesale funding markets that provide them with funds to lend. To achieve a profit margin, banks aim to earn interest and fee revenue that is greater than the interest they pay.
Businesses borrow from banks to finance their investments and operations. Business loans are flexible. They can be secured or unsecured, with a fixed or variable interest rate, and can be used for a variety of purposes... purchase to read more