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Commercial Banking in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Commercial Banking Market Research Report | NAICS 52211 | Jan 2017

Bank on it: Despite recessionary setbacks, returning economic confidence will revive revenue

IBISWorld’s Commercial Banking market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
Industry Statistics & Market Size
Annual Growth 11-16
Annual Growth 16-21
Annual Growth
Industry Threats & Opportunities
  • Significant industry consolidation over the past five years has resulted in many unprofitable banks exiting the market
  • Commercial banks have benefited from Freddie Mac’s efforts to help homeowners refinance
  • The industry will continue to benefit from government support, despite regulations
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Industry Analysis & Industry Trends

Revenue for the Commercial Banking industry finally returned to growth in 2015, after declining every year since 2008. Declining revenue during the period is attributable to the effect that the subprime mortgage crisis had on the banking sector. Despite an overall decline in revenue, profit margins have been rising. Significant consolidation in the industry over the past five years has resulted in many unprofitable banks exiting the market. Additionally, robust performance of capital markets over the past five years has also boosted profit margins. Over the five years to 2021, government regulation and technology-driven competition are forecast to dramatically change the business model that commercial banks use... ... purchase to read more

Industry Report - Industry Analysis Chapter

Revenue for the Commercial Banking industry is expected to decrease at an annualized rate of 0.5% to $553.2 billion over the five years to 2016. Declining revenue during the period is attributable to the effect that the subprime mortgage crisis had on the banking sector. Federal Deposit Insurance Corporation (FDIC) numbers indicate that huge mortgage loan losses reduced industry profit margins at the recession’s peak. As many as 198 banks failed from 2011 through September of 2016, while many smaller commercial banks were unprofitable on a yearly basis during the same period. Nevertheless, many commercial banks are starting to capitalize on mobile and online banking platforms, which have recently driven organic growth, especially for deposits.

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Additional Insights for the Commercial Banking Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Banking 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 Prime rate and Aggregate household debt in the Commercial Banking industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Commercial Banking Industry?

    This industry comprises banks 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. Banks in this industry are regulated by the Office of the Comptroller of the Currency.

    Industry Products
    Depository services and other noninterest-income generating productsReal estate loansLoans to individuals excluding credit cardsCommercial and industrial loansCredit card loans
    Industry Activities
    Receiving deposits from customersIssuing consumer, commercial and industrial loans

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Prime rate
  • Aggregate household debt
  • Corporate profit
  • External competition for the Commercial Banking industry
  • Regulation for the Banking sector
  • Current Performance
  • Return to growth
  • Obstacles arise despite recovery
  • Refinancing opportunities
  • A change in landscape
  • Government regulation
  • Chart: Revenue Growth
  • Industry Outlook
  • Commercial banks gain on savings banks
  • Technology and regulation
  • Table: Commercial Banking Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Banking Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Mining
  • Construction
  • Information
  • Consumers
  • Key Selling Industries
  • Central Banking
  • Commercial Leasing
  • Products & Services
  • Depository services and other noninterest-income generating products
  • Real estate loans
  • Commercial and industrial loans
  • Other
  • Loans to individuals excluding credit cards
  • Credit card loans
  • Chart: Commercial Banking Industry Products and Services Segmentation
  • Demand Determinants
  • Loans
  • Major Markets
  • Corporate clients
  • Retail customers
  • Other clients
  • Chart: Major Market Segmentation for the Commercial Banking Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Banking
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Banking Industry
  • Industry Globalization
    Major Companies
    Wells Fargo & Company
    JPMorgan Chase & Co.
    Bank of America Corporation
  • Table: Wells Fargo & Company - financial performance
  • Table: JPMorgan Chase & Co. - financial performance
  • Table: Bank of America Corporation - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Banking Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Commercial Banking Industry
  • Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Prime Rate (2007-2021)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Table: Industry Financial Ratios
  • Jargon & Glossary
    Generation Y
  • The demographic of Americans generally aged 10 to 30.
  • 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).
  • 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.
  • Warrant
  • A type of security that entitles the holder to purchase stock in the issuing company at a specified price.
  • Write-Down
  • A deliberate reduction in the value of an asset to reflect its current market value.

  • Why Buy this Report?
    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 Commercial Banking:
    • 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 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 Commercial Banking 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 Commercial Banking, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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