Commercial banking & Investment banking
introduction Types of bank: - retail banking - business banking -corporate banking - private banking - investment banking
I) Commercial bank Commercial bank's definition: A commercial bank is a type of retail bank that provides services, such as accepting deposits, giving business loans and basic investment products.
I) Commercial bank Commercial bank's activity: Saving - Credit operation - Propose services
Commercial Banking Commercial Bank Business Bank PART I
II) Investment bank Investment bank’s definition two main lines of business : - Trading securities - The promotion of securities
II) Investment bank Organizational structure - front office activities - middle office activities -back office activities
Rank Company Fees ($m) 1 JP Morgan Chase 5,261.17 2 Bank of America 4,417.39 3 Goldman Sachs 3,917.98 4 Morgan Stanley 3,527.09 5 Citigroup 3,417.13 6 Crédit Suisse 3,216.74 7 Deutsche Bank 3,099.44 8 Barclays 2,966.35 9 UBS 2,061.56 10 Wells Fargo 1,814.50
Comparison
«Commercial banking » Vs « investment banking » The 1929 Wall Street Crash «Commercial banking » Vs « investment banking » Glass–Steagall Act X the financial crisis of 2008
Industry profile
II) Investment bank Criticisms Conflicts of interest Compensation
III)Present situation History - 1929: regulation program - 1933: Glass-Steagall act - 1984: Bérégovoy reform - 1999: Gramm-Leach-Bliley Act
III)Present situation Universal bank definition
Conclusion: Issues: -Moral hasard -Systemic risk Francois Hollande wants to separate banking activity that is useful for investment and employment from speculation.
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