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 - Starting a New Business Chapter
The Commercial Banking industry has high barriers to entry. An organization must receive prior approval from the Office of the Superintendent of Financial Institutions (OSFI) to initiate operations. The organization is then subject to ongoing supervision and regular inspections by the OSFI and provincial governments. Depending on what designation a bank receives from the OSFI, it may be restricted in its range of activities and acquisitions of competing banks.
Perhaps the largest barrier to entry for potential operators is obtaining and maintaining sufficient capital levels for operations. By the first quarter of 2014, commercial banks were expected to meet a total Tier 1 capital ratio of 8.5% and total capital ratio of 10.5%... purchase to read more