Industry Analysis & Industry Trends
Although the industry experienced severe ups and downs over the past five years, commercial banks are set to recover in the five years to 2021. Banks endured massive loan losses as a result of the credit crisis, causing revenue to contract significantly. However, improving consumer confidence and corporate profit will facilitate improvements in the credit market, enabling operators to grow their deposits and offer competitive rates... purchase to read more
Industry Report - Industry Investment Chapter
The Commercial Banking industry is highly competitive, requiring banks to continually achieve cost savings and other efficiencies to maintain customer satisfaction and retain their business. This requires investment in an extensive branch and ATM network to have a presence in regions that are conveniently located near a bank's customer base.
Beyond this, banks must invest heavily in technology and communication infrastructure, which is necessary to remain competitive in today's dynamic environment. These and other investments impose capital investment requirements on banks, which are represented by depreciation. The Commercial Banking industry is expected spend $0.13 on capital for every dollar spent on labor, increasing from $0.07 in 2011... purchase to read more