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.
Industry Statistics & Market Size
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... purchase to read more
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
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
What is the
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.
Depository services and other noninterest-income generating productsReal estate loansLoans to individuals excluding credit cardsCommercial and industrial loansCredit card loans
Receiving deposits from customersIssuing consumer, commercial and industrial loans
|About this Industry|
|Industry at a Glance|
|Industry Statistics Snapshot|
|Key External Drivers|
|Prime rateAggregate household debtCorporate profitExternal competition for the Commercial Banking industryRegulation for the Banking sector|
|Return to growthObstacles arise despite recoveryRefinancing opportunitiesA change in landscapeGovernment regulationChart: Revenue Growth|
|Commercial banks gain on savings banksTechnology and regulationTable: Commercial Banking Industry Revenue Outlook|
|Industry Life Cycle|
|Life cycle reasonsChart: Benchmarking - Commercial Banking Industry Lifecycle vs The Economy|
|Products & Markets|
|Key Buying Industries|
|Agriculture, Forestry, Fishing and HuntingMiningConstructionInformationConsumers|
|Key Selling Industries|
|Central BankingCommercial Leasing|
|Products & Services|
|Depository services and other noninterest-income generating productsReal estate loansCommercial and industrial loansOtherLoans to individuals excluding credit cardsCredit card loansChart: Commercial Banking Industry Products and Services Segmentation|
|Corporate clientsRetail customersOther clientsChart: Major Market Segmentation for the Commercial Banking Industry|
|Chart: Business Locations by State|
|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|
|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|
|Chart: Level of Capital Intensity for the Commercial Banking IndustryChart: Tools of the Trade: Growth Strategies for Success|
|Technology & Systems|
|Chart: Volatility vs Industry Growth|
|Regulation & Policy|
|Table: Industry Data for the Commercial Banking Industry|
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 |
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).
When a customer fails to pay back money received through a loan to the bank.
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.
A type of security that entitles the holder to purchase stock in the issuing company at a specified price.
A deliberate reduction in the value of an asset to reflect its current market value.
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
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This report on
- 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.
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
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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.