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
Three regions dominate the Global Commercial Banks industry: Europe, North Asia and North America. The geographical distribution of bank assets reflects both the degree of deregulation and the development in financial and capital markets. Yet, the commercial banking market still has a considerable way to go before becoming completely globalized, and as this trend continues, the three regions' shares of global banking assets are expected to diminish.
According to the latest available information from the European Central Bank and IBISWorld estimates, Europe is anticipated to account for 40.7% of the industry's total assets. Yet, Europe's share of industry assets has declined significantly since the recession... read more