Industry Analysis & Industry Trends
As a result of the recession, banks throughout the world suffered as their loan loss provisions skyrocketed due to their borrowers becoming unable to repay debt obligations. In addition, during a time when the cost of funding rose sharply due to credit availability disappearing, banks wrote off billions of dollars worth of assets as values depreciated. Looking ahead, banks operating in developed economies are expected to perform better as deferred business and capital expenditure moves forward. Banks in emerging markets held up well during the crisis, and opportunities exist for large global banks operating in mature markets to expand into these regions and benefit from the growth that is expected to occur in the coming five years... read more
Banks generate income both from interest and non-interest earning activities. The interest earning activities are the core area of revenue generation, and include the interest earned on loans, from mortgages to credit cards. Non-interest income on the other hand is generally obtained from fees, charges and commissions.
Business loans are primarily offered to customers through client relationship teams and various product partners that are associated with commercial banks. Products include commercial and corporate bank loans and commitment facilities, which cover business banking clients, middle market commercial clients and large multinational corporate clients... read more