Industry Analysis & Industry Trends
Despite the low interest rates that emerged as a result of the global financial crisis, the Commercial Banking industry has performed relatively well over the five years to 2015. Over this period, the overnight rate, which is strongly correlated with interest rates charged by commercial banks, is expected to increase slightly in the five years to 2015. In the coming years, projected increases in the overnight rate and improvements in corporate profit are anticipated to boost interest income from lending products. However, mounting regulation and capital requirements hold the potential to limit the flexibility of industry operators and make them less competitive on a global scale... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Commercial Banking industry is in the mature stage of its economic life cycle. This stage is characterized by increasing merger and acquisition activity, slowing product development and the wholehearted market acceptance of the industry's services. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to increase at an annualized rate of 2.7% over the 10 years to 2020. In contrast, Canadian GDP is projected to grow at an annualized rate of 2.1% over the same period.
In an effort to combat low interest rates and mounting regulation, industry operators have merged or acquired competitors to expand their client bases. Acquisitions tend to boost an operator's profitability, as unit costs are inversely related to scale... purchase to read more