Our current economy and how it is affected banking companies? March 22, 2010
Posted by Banking in : Other - Business & Finance , trackbackduval_bound asked:
Scenario: You work as the manager of the second largest bank in your region of the United States. The bank’s top management team has asked you to present an overview of how the current economy and financial changes have impacted the banking industry and what changes must be made as a result.
What are some key points, ideas and sugguestions?
Comments»
Commercial banking will become a boring, low-growth low-profit, low-innovation business again. Balance sheets will become a whole lot less leveraged. Loans will be given to those who can actually pay them back. People will have to have downpayments and good credit. People will probably begin to trade mortgage backed securities and derivatives again, but there will be more scruting into the relaibility and quality of these instruments.