Week 4 Banking Industry: Structure and Competition

Module 006 Structure of the U.S Commercial Bank

Industry
Week 4 Banking Industry: Structure and Competition

Response to Branching Restrictions

• 1. Bank Holding Companies

• 2. Automated Teller Machines
Week 4 Banking Industry: Structure and Competition

Bank Consolidation and Nationwide Banking

This consolidation has had two consequences.

1. Different types of financial intermediaries are
encroaching on each other’s territory, making them more
alike.
2. Consolidation has led to the development of what the
Federal Reserve has named large, complex, banking
organizations (LCBOs).
Week 4 Banking Industry: Structure and Competition

Separation of Banking and Other Financial Services Industries throughout

the World
1. Universal Banking
2. British-style Universal banking system
3. Some legal separation of banking and other financial
services
Week 4 Banking Industry: Structure and Competition

Thrift Industry: Regulation and Structure

1. Savings and Loan Association

2. Mutual Savings Bank
3. Credit Union