Industry Analysis & Industry Trends
Over the past five years, increases in retail lending activity, prompted by an upturn in the housing market, have supported growth in the industry. The flow of credit available to banks also improved. Industry revenue is expected to increase at a compound annual rate of 4.5% over the five years through 2016-17. However, commercial lending activity remained weak, despite beginning to improve during the latter part of the period, and constrained industry growth. The tightening regulatory environment and very strict lending criteria also restricted lending activity and curbed industry expansion. In addition, the low interest rate environment curbed growth over the past five years.
In 2016-17, IBISWorld expects revenue to expand by 3.9% to £121 billion... 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 limits the scope for additional borrowing by consumers or businesses. However, government initiatives targeted at the housing market should propel growth over the coming period.
The industry's contribution to the economy is expected to grow at a compound annual rate of 4.7% over the 10 years through 2021-22, while the economy is expected to grow at 2.3% over the same period... purchase to read more