Chapter 13 - Financial industry structure. In this chapter, students will be able to understand: The United States has a comparatively large but declining number of banks, nondepository institutions are playing an increasingly important role in the financial system. Five types of financial intermediary may be classified as nondepository institutions. | Chapter Thirteen 13- 13- Introduction The . has about 6,800 commercial banks and roughly 16,000 depository institutions. For many years, most . banks were unit banks, or banks without branches. The decline in the total number of banks and the increase in the number of banks with branches are not the only changes we have seen. 13- 13- Introduction 13- 13- Introduction The crisis of 2007-2009 has transformed the . financial industry. The failure or forced merger of several large banks and other depository institutions accelerated concentration. In July 2008, the . government placed the two massive government-sponsored enterprises (GSEs) for housing finance in conservatorship. In September 2008, the four largest independent investment banks failed, merged, or became bank holding companies. 13- 13- Introduction To understand the changing structure of the financial industry, we will discuss the services provided by . | Chapter Thirteen 13- 13- Introduction The . has about 6,800 commercial banks and roughly 16,000 depository institutions. For many years, most . banks were unit banks, or banks without branches. The decline in the total number of banks and the increase in the number of banks with branches are not the only changes we have seen. 13- 13- Introduction 13- 13- Introduction The crisis of 2007-2009 has transformed the . financial industry. The failure or forced merger of several large banks and other depository institutions accelerated concentration. In July 2008, the . government placed the two massive government-sponsored enterprises (GSEs) for housing finance in conservatorship. In September 2008, the four largest independent investment banks failed, merged, or became bank holding companies. 13- 13- Introduction To understand the changing structure of the financial industry, we will discuss the services provided by both depository and nondepository financial institutions. They provide a broad menu or services including: Building and selling securities; Offering loans, insurance, and pensions; and Providing checking accounts, credit cards, and debit cards. 13- 13- Banking Industry Structure To understand the structure of today’s banking industry, we need to trace it back to its roots. In this section we will learn that banking legislation is the reason we have so many banks in the . We will look at the trend toward consolidation that has been steadily reducing the number of banks since the mid-1980’s. We will also briefly consider the effects of globalization. 13- 13- A Short History of . Banking To start a bank, one needs permission in the form of a bank charter. Until 1863, All bank charters were issued by state banking authorities, and There was no national currency so banks issued banknotes. These banknotes did not hold value from one place to another and banks regularly .
