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Lecture 1: The financial services industry: depository institutions (Banks…
Lecture 1: The financial services industry:
depository institutions
Banks
largest depository institution in terms of size
Major difference between banks and
credit unions/ saving institutions
banks have more assets and liabilities
Reasons for the increases in number of banks
entry requirements
changes in the regulatory requirements of non- bank depository institutions
operational foci of banks (p.38)
4 largest bank
also operate in Asia, the US and UK
smaller (regional) banks
large % of assets invested in residential housing loans
Performance of Big 4
Full- service provision =>
enhanced margins
greater cost efficiencies
higher performance
Balance sheet and recent trends
shift from
commercial lending
to
lending for residential housing
over the last 20 years
growth of foreign currency assets and liabilities
increases in off- balance sheet (
OBS
) activities (p.42)
Building societies and credit unions
(p.43)