The US banking services industry is in a mature stand for, where some of the key market players have been direct within the country for more than a century. Over time the industry has undergone various stages of services development and improvement, but higher up all, the maturity of the industry is most prominently shown by the size of it of the banking sector. The banking industry has virtually penetrated as an indispensable element of doing course in the US, managing ones personal finances and plays a signifi buttockst role in on a macroeconomic level in terms of the USs development. other key characteristic of the US banking industry stemming from its maturity stage is the trend for an ever-greater consolidation between market players. Thus for example, bandage at year-end 1984, there were 15,084 banking organizations by year-end 2003, that payoff had fallen to 7,842â€"a decline of almost 48 %. establish on industry data, the majority of banking organizations disappeared as a firmness of mergers and acquisitions, rather than failure to compete on the market (Jones, 2006). As of 2011, analysts expectations are that the consolidation trend will continue and by the end of the current year there will be a 4.
4% decline in the number of banking organizations, in comparability with 2010 (The Huffington Post, 2011).
Bargaining Power of Suppliers
From the perspective of the US banking industry the US Federal Reserve System can be identify as a key supplier for credit intermediation and other bank services providers operating in the US. also regulating the industry the US Federal Reserve manages the silver supply of the county. In times of economic challenges the Reserve can buy government bonds and thus increase the circulation of money in the economy. More importantly though form a mercantile-grade banking perspective, the Federal Reserve also sets the interest rates it charges commercial banks for loaning them money. When...If you want to get a full essay, wander it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment