Loan star: Improving economy and access to credit to foster revenue growth

The Commercial Banking industry in Texas, the fourth-largest state in the industry in terms of revenue, has experienced modest growth over the past five years as the state's economy has grown, and demand for financial services has increased. Over the five years to 2017, the industry benefited from improving disposable income levels and increased access to credit, raising the number of loans procured across the state, while the operators also continued to increase revenue from noninterest income. While federal funds rates are expected to rise more frequently over the next five years, they will still remain relatively low, and thus, demand for loans in Texas is expected to remain strong...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Access to credit in Texas has increased as the economy has grown, signaling a greater number of loans procured across the state
  • Noninterest income has been the primary impetus for growth in industry revenue
  • Operators will amass more interest income from loan agreements
  • Industry Report - Starting a New Business Chapter

    To commence operations in the Commercial Banking industry in Texas, an operator must receive approval for a federal or state charter. The Office of the Comptroller of the Currency offers federal charters, while the Texas Department of Banking issues state charters. A proposed bank submits information about its business plan, finances, risk management structure, senior management team and capital adequacy to the appropriate agency to receive a charter. A commercial bank must also gain approval for deposit insurance from the FDIC. Additional approval from the Federal Reserve is required if the operator is a holding company or a state-chartered bank that wants to become a member of the Federal Reserve. Altogether, the entire process typically takes a year or longer...purchase to read more.

    Additional Insights for the Commercial Banking in Texas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Banking in Texas Industry are

  • Having a good reputation
  • Membership of joint marketing/distribution operations
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Regulation for the Banking sector and Access to Credit in Texas in the Commercial Banking in Texas industry impact industry performance..

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    What's in this report

    What is the Commercial Banking in Texas Industry?

    This industry comprises commercial banks in Texas that provide financial services to retail and business clients in the form of commercial, industrial and consumer loans. Banks accept deposits from customers, which are used as sources of funding for loans. Operators receive charters from either the Office of the Comptroller of the Currency or the Texas Department of Banking. Banks are also insured by the Federal Deposit Insurance Corporation (FDIC).

    Industry Products
  • Depository services and related fees
  • Real estate loans
  • Loans to individuals
  • Commercial and industrial loans
  • Industry Activities
  • Receiving deposits from customers
  • Issuing consumer, commercial and industrial loans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Regulation for the Banking sector
  • Access to Credit in Texas
  • Number of businesses in Texas
  • Per capita disposable income in Texas

  • Current Performance
  • Interest rates rebound
  • Noninterest income rises
  • Regulation drives consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Interest rates climb
  • Industry landscape
  • Table: Commercial Banking in Texas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Banking in Texas Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Mining
  • Construction
  • Information
  • Consumers

  • Key Selling Industries
  • Central Banking
  • Commercial Leasing

  • Products & Services
  • Real estate loans
  • Depository services and related fees
  • Commercial and industrial loans
  • Other
  • Loans to individuals
  • Chart: Commercial Banking in Texas Industry Products and Services Segmentation

  • Major Markets
  • Corporate customers
  • Retail customers
  • Other customers
  • Chart: Major Market Segmentation for the Commercial Banking in Texas Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Rent and utilities
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Banking in Texas

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Banking in Texas Industry

  • JPMorgan Chase & Co., Wells Fargo & Company, Bank of America Corporation, BBVA Compass Bancshares Inc.,
  • Table: JPMorgan Chase & Co. - financial performance
  • Table: Wells Fargo & Company - financial performance
  • Table: Bank of America Corporation - financial performance
  • Table: BBVA Compass Bancshares Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Banking in Texas Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Commercial Banking in Texas Industry
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Prime Rate (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • When a customer fails to pay back money received through a loan to the bank.
  • Loan And Lease Loss Provision
  • An amount set aside as an allowance for bad debts (i.e. debts where the customer defaults or where the terms of the loan need to be renegotiated).
  • Subprime Mortgage
  • A type of mortgage made out to borrowers with lower credit ratings. Lending institutions often charge higher interest on subprime mortgages to compensate themselves for carrying more risk.
  • Warrant
  • A type of security that entitles the holder to purchase stock in the issuing company at a specified price.
  • What Our Customers Say

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    The Commercial Banking in Texas market research report includes:
    • Historical data and analysis for the key drivers of this industry
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