The United Kingdom Banking Industry

The UK banking system is an Oligopoly because there are a small number of companies in the industry to allow barriers to be raised against the entry of new firms. ‘It’s important that we have to make sure there’s no banks too big to fail’ (article). Although in an oligopoly its known

1. Has the inflation rate in Canada increased or decreased in the past few years? What about interest rates?

In this section, there are two different case studies which is Lloyds Bank Group and the Deloitte. These two cases indicated that how the companies have been confronting the gender issues, while carrying the employee selection function and to what extent the female has been successful in ensuring the desired objectivity.

Infinity bank was one of the 10 largest banks in the UK with over 1800 retail branches. However, due to the change in the nature of the banking industry since the 1980’s Infinity bank had seen a consistent drop in its profitability. Deregulation of the industry had been one of the major changes that had taken place during this time which had increased the competition in the industry. Even though Infinity had followed other major banks in responding to this challenge by cutting costs, closing branches and making use of information technology, its results were far worse than others.

This Act provided an immediate instrument for UK banks to be transported into public ownership and then - if there is one - to make a further transfer to a buyer in situations where it is necessary to maintain stability in the UK financial system . This was also a good response because by using this act it allowed The Treasury to nationalize Northern Rock and parts of Bradford & Bingley . Nationalization safeguarded the bank’s future, which was crucial for the country’s financial well-being, this is great because it could be monitored closely by the government on behalf of the taxpayer - preventing the banks from making the same detrimental mistakes . However, this act was replaced by the Banking Act 2009 that made provision for the nationalization of banks, it amended the law on bank insolvency and administration. This shows the that the Banking Act 2008 is an inadequate response because it was in need of reformation due to nationalization not being successful in the hands of the public, rather only a short term solution. Furthermore, it can be argued that politicians are not the right people to run the banks. They do not have the commercial abilities essential to run such important and challenging financial institutions. If experienced veterans of the banking industry were unsuccessful in evading the pitfalls recently, inexperienced government personnel are very unlikely to succeed. It can be said that the financial, and in

First, an overview of the Twentieth Century American Banking System. Banking regulations are implemented to strengthen the banking sector and to eliminate bank panics. For example, the creation of the Federal Reserve System in 1913 was largely a response to lessons learned in the Panic of 1907. The Creation of the Federal Reserve System in 1913 marked the beginning of the modern era of Banking in America. From 1864 until 1913, American banking was dominated by a federally regulated system of the national banks. They alone were allowed to issue currency, and the currency notes they issued were printed by the federal government with uniform size and design. How much currency a national bank could issue depended on its capital. Although, this

Banking industry is currently operating in the maturity stage. There are many players as a result of which the competition is quite high. Competition is broadly based on the levels of fees charged, reputation, the range of services and products provided. As the industry consolidates and the range of services broadens, the size and geographic spread of industry players in increasing. Providing a high set of barriers is the capital and regulatory requirements within the banking sector. Entities that want to start up as a commercial bank and/or investment bank or securities dealer face significant establishment costs in order to gain acceptance and meet market reputation. Furthermore, start-ups require up-front expenses in order to establish proper distribution channels. Globalization is high and the trend is increasing. Cross-border sales and acquisitions of banking operations are also occurring, as assets are shuffled in the race to raise capital.

The United States banking industry has been a problem ever since the fraud and corruption from the market crash of ’08. There have been two sides arguing what we should do to these banks. Many people say, “We need to split up the big banks into smaller banks.” Their argument is that the smaller banks will be easier to monitor to make sure no fraud is going on and it will cause there to be more competition in the industry which will lower interest rates. The other side of the argument where many people also stayed is that the big banks don’t need to be split up. They just need a bailout to get back on their feet and they can sort this mess out. The arguments stand on two principles one side says the banks are corrupt and need to be disbanded, and the other side’s states that the banks are too big to fail; come ground is difficult for these two but they both want to fix the economy.

As a capitalistic society, the United States banking sector has flourished ever since the chartering of its first bank, Bank of North America in 1781 (Smith). Historically, banking has brought on significant industrialization in the United States, enabling our nation to stand among the most powerful today. However, the current United States national debt is at $19.2 trillion, and every second it is increasing exponentially (“U.S. National”). How did we manage to fall into such a dark abyss of financial debt? Poor banking, continuous deregulation of the banking sector, riskier and higher leveraged investments, sub-prime mortgage loans, and fraud. These are all factors which have led our economy to collapse over and over again. In this mess

Banking industry is highly competitive as there is high exit barrier. Moreover, competitors are large and quite equally balanced. Additionally, as banking industry has emerged for hundred years, just about everyone who needs banking services already has them.

Less visible, but no less significant, was the reduction in activities carried out in branches. Up until the early 90s, branch managers were in charge of most customer relationships. The branch manager made decisions on who could take out a mortgage, be covered by insurance, or go into overdraft. At Infinity, as at most UK banks, these powers had been vastly curtailed, and by the late 90s most decisions were made in a centralised fashion.

The Australian banking industry resembles an oligopoly with a few players playing a key part. This is evident from the share of top 5 banks in total housing loans standing at almost 73%, and it has risen over time from 60%. This shows that loans are more concentrated with top 5 banks now.

The 1980s was an era of expansive mergers and acquisitions fueled by the popularity of corporate raids. Although this drastically changed the landscape ofmany industries, the banking industry was relatively untouched. Commercial banks were protected from hostile takeovers by federal regulations. The McFadden Act of 1927 and the Bank Holding Company Act of 1956 supported the existence of 24,495 small banksl in 1985.However, by 2003 there were 11,021 small banks and 80 banks had adopted a poison pill plans (Critchfield, Davis, Davison, Gratton,Hanc, Samolyk, 2004). The Riegle Neal Interstate Banking and Branching Efficiency

Firstly you have increased automation within a banking environment you now have three main ways of banking. 1. Online 2. Telephone Banking 3. Branch most major banks have introduced productive ways of banking to suit economy. Know two individuals bank the same everyone likes something different you will find that generation will fuel the channel in which and individual will decide to bank.

Private banking industry has changed in a very basic way, driven by many key factors such as: free competition systems, modern developments in information technology (in particular, developments of the internet), and changing demographics. Private banks now operate in an environment shaped by increasing and shifting regulations, and in markets influenced by the uncontrolled situations of the world economy and geopolitical issues.