The Retail deposits in Europe, attained a value of USD 12,996,718.93 in 2023
The indicator recorded a historical decline (CAGR) of 14% between 2020 and 2023, and is expected to grow by ...
GlobalData projects the indicator to grow ...
Balances for consumer deposits in Europe recorded a low-double-digit growth in 2020
Balances for consumer deposits in Europe recorded a significant growth between 2017-2020, with a low-double-digit growth in 2020.
Growth in the banking industry has been driven by monetary and fiscal policy. These two different governmental interventions either increase or decrease interest rates, or increase the country’s money supply by issuing more cash and increasing banks’ cash liquidity. The fluctuation in interest rates affects banks’ lending power and the profitability of lending money to consumers. Lower interest rates reduce the profits from lending money, while higher interest rates make it more profitable. Banks on the verge of collapse due to cash shortages (because of bad investments, reduced revenues, or high loan default rates) may receive cash from the government or central bank in the form of an injection in order to boost their liquidity and make them operational once more. In countries that are under economic recession, this is a common phenomenon, with governments intervening either with fiscal or monetary policy.
The COVID-19 outbreak has decreased margin profits for the industry’s players to a great extent. Due to the coronavirus pandemic, cities were forced into lockdowns and consumers were not allowed to go about their everyday businesses. This decreased consumer spending to a great extent. Due to low inflation rates, central banks decided to cut down interest rates greatly, aiming to boost the economy and make borrowing easier for consumers. This increased borrowing amounted to new highs during 2020; however, this alone was not enough to offset the losses banks experienced due to the ultra-low interest environment, decreasing profits for industry players. However, the value of the industry has been driven by the total assets of the industry players, which rose due to the extensive lending and monetary policies.
Five Forces Analysis
The banks market will be analyzed taking banks, bank holding companies and financial institutions holding companies as players. The key buyers will be taken as consumers and businesses, and it providers as the key suppliers.
There are numerous competitors in the banking industry, including banks, investment banks, credit unions, thrifts, advisory firms, and credit card issuers, among others, occupying one or more of the industry's numerous segments and niches. However, the banking industry is intrinsically concentrated to a few large players. Strict capital regulations are in place to secure the stability of the financial system. The nature of this business itself mean that asset concentration is reinforcing growth through economies of scale.
United States of America
United States of America
United States of America
United States of America
United States of America
United States of America
United States of America
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