Professional Documents
Culture Documents
Key Topics
Powerful Forces Reshaping the Industry
What Is a Bank?
The Financial System and Competing FinancialService Institutions
Old and New Services Offered to the Public
Key Trends Affecting All Financial-Service Firms
Appendix: Career Opportunities in Banking and
Financial Services
McGraw-Hill/Irwin
Bank Management and Financial
Introduction
Banks are the principal source of credit (loanable funds)
for millions of individuals and families and for many
units of government
Worldwide banks grant more installment loans to
consumers (individuals and families) than any other
financial-service provider
The assets held by U.S. banks represent about one-fifth
of the total assets
In other nations banks hold half or more of all assets in the
financial system
McGraw-Hill/Irwin
Bank Management and Financial
What Is a Bank?
A bank can be defined in terms of:
1. The economic functions it performs
2. The services it offers its customers
3. The legal basis for its existence
McGraw-Hill/Irwin
Bank Management and Financial
McGraw-Hill/Irwin
Bank Management and Financial
Industry leaders
Cover whole regions, nations, and continents
Offer the widest possible menu of financial services
Acquire smaller businesses
Face tough global competition
Community banks
Much smaller
Service local communities and towns
Offer a narrower, but often more personalized, menu of
financial services
McGraw-Hill/Irwin
Bank Management and Financial
McGraw-Hill/Irwin
Bank Management and Financial
McGraw-Hill/Irwin
Bank Management and Financial
McGraw-Hill/Irwin
Bank Management and Financial
Savings Associations
Credit Unions
Fringe Banks
Money Market Funds
Mutual Funds (Investment Companies)
Hedge Funds
Security Brokers and Dealers
Investment Banks
Finance Companies
Financial Holding Companies
Life and Property/Casualty Insurance Companies
McGraw-Hill/Irwin
Bank Management and Financial
McGraw-Hill/Irwin
Bank Management and Financial
McGraw-Hill/Irwin
Bank Management and Financial
McGraw-Hill/Irwin
Bank Management and Financial
McGraw-Hill/Irwin
Bank Management and Financial
McGraw-Hill/Irwin
Bank Management and Financial
Service Proliferation
Rising Competition
Government Deregulation and then Reregulation
Crisis, Reform, and Change in Banking and Financial
Services
An Increasingly Interest-Sensitive Mix of Funds
Technological Change and Automation
Consolidation and Geographic Expansion
Convergence
Globalization
McGraw-Hill/Irwin
Bank Management and Financial
Quick Quiz
What is a bank? How does a bank differ from most other financialservice providers?
Why are some banks reaching out to become one-stop financialservice conglomerates? Is this a good idea?
Which businesses are bankings closest and toughest competitors?
What services do they offer that compete directly with banks
services?
What is happening to bankings share of the financial marketplace
and why?
How have banking and the financial-services market changed in
recent years? What powerful forces are shaping financial markets and
institutions today?
McGraw-Hill/Irwin
Bank Management and Financial
Loan Officers
Credit Analysts
Managers of Operations
Branch Managers
Systems Analyst
Auditing and Control Personnel
Trust Department Specialist
Tellers
McGraw-Hill/Irwin
Bank Management and Financial