Bank on it: Rising consumer confidence will lead consumers to seek out industry services

Over the five years to 2017, operators in the Regional Bank industry have benefited from macroeconomic growth stemming from increased consumer confidence. Consumers have gained renewed confidence in their long-term financial stability. This has lead consumers to increase their debt levels. Furthermore, increased economic activity as a result has given the Federal Reserve the confidence it has needed to increase the Federal Funds Rate (FFR) four times during the period, from its recessionary lows. As the FFR has increased, interest rates in general have risen to the benefit of Regional Banks who have lent to consumers at higher interest rates...purchase to read more.

Industry Statistics & Market Size
Revenue
$184bn
Annual Growth 12-17
4.0%
Forecast Growth 17-22
Profit
Employment
560,943
Businesses
22,577

Industry Threats & Opportunities

  • Industry operators have benefited from macroeconomic growth stemming from increased consumer confidence
  • Industry operators have benefited from the FFR increasing four times over the past five years
  • Consumers’ demand for new products will provide an opportunity for new businesses to be formed
  • Industry Report - Industry Investment Chapter

    The Regional Banks industry competes extensively with other industry within the financial services sector for top-tier talent. As a result of this, wage expenses for industry operators are high. Comparatively, outside of depreciation related to technology and ATMs, regional banks have relatively few capital expenses. As a result of these trends, the industry displays a low level of capital intensity. IBISWorld estimates that for every dollar spent on wages in 2017, $0.02 will be spent on capital. This is a slight decrease from 2012 when $0.03 was spent on capital for every dollar spent on wages. Industry employees are well-educated workers, who often hold special designations that enable them to command even higher wages. Acc...purchase to read more.

    Additional Insights for the Regional Banks Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Regional Banks Industry are

  • Having a good reputation
  • Good financial and debt management
  • Ability to raise revenue from additional sources
  • IBISWorld analysts also discuss how external factors such as Aggregate household debt and Prime rate in the Regional Banks industry impact industry performance..

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    What's in this report

    What is the Regional Banks Industry?

    Depository institutions in this industry have assets from $50.0 billion to $500.0 billion and provide services that include deposits, loans, leases, mortgages and credit cards, among others. Furthermore, regional banks do not have to be limited to operation in one state.

    Industry Products
  • Depository services and other noninterest-income generating products
  • Real Estate Loans
  • Commercial and industrial loans
  • Loans to individuals excluding credit cards
  • Credit card loans
  • Industry Activities
  • Receiving deposits from customer
  • Issuing consumer, commercial and industrial loans
  • Issuing mortgages
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate household debt
  • Prime rate
  • year conventional mortgage rate
  • Regulation for the Banking sector

  • Current Performance
  • Economic activity increases
  • Monetary policy and loan volumes
  • Regulatory and industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Stable economic landscape
  • Monetary policy and loan volumes
  • Industry landscape
  • Table: Regional Banks Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Regional Banks Industry Lifecycle vs The Economy

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

  • Key Selling Industries
  • Commercial Leasing
  • Finance and Insurance

  • Products & Services
  • Real Estate Loans
  • Depository services and other noninterest-income generating products
  • Commercial and industrial loans
  • Other
  • Loans to individuals excluding credit cards
  • Credit card loans
  • Chart: Regional Banks Industry Products and Services Segmentation

  • Demand Determinants
  • Loans

  • Major Markets
  • Retail market
  • Corporate market
  • Other clients
  • Chart: Major Market Segmentation for the Regional Banks Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Regional Banks

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Regional Banks Industry

  • Industry Globalization
    Capital One Financial Corporation, US Bancorp, The PNC Financial Services Group Inc., BB&T Corporation,
  • Table: Capital One Financial Corporation - financial performance
  • Table: US Bancorp - financial performance
  • Table: The PNC Financial Services Group Inc. - financial performance
  • Table: BB&T Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Regional Banks 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 Regional Banks Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Generation Y
  • The demographic of Americans generally aged 10 to 30.
  • Loan And Lease Loss Provisio
  • 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).
  • Loan Default
  • When a customer fails to pay back money received through a loan to the bank.
  • 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.
  • Write-Down
  • A deliberate reduction in the value of an asset to reflect its current market value.
  • What Our Customers Say

    Why buy this report?

    The Regional Banks industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Regional Banks:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Regional Banks market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Regional Banks, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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