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 Products Chapter
Banks generate revenue by charging interest on loans and 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. This can range from long-term loans for large investments, such as new property and equipment, to short-term operating loans for expenses such as inventory purchases or payroll. Bus.. purchase to read more