Commercial banking
& Investment
banking
introduction
Types of bank:O - retail bankingO - business bankingO -corporate bankingO - private bankingO - investment banking
I) Commercial bankO 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 bankO Commercial bank's activity:
- Saving
- Credit operation
- Propose services
Commercial Banking
OCommercial Bank OBusiness Bank
PART I
II) Investment bankO Investment bank’s definition
two main lines of business :
- Trading securities
- The promotion of securities
II) Investment bankO Organizational structure
O - front office activities
O - middle office activities
O -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 »
Glass–Steagall Act
The 1929 Wall Street Crash
the financial crisis of 2008
X
Industry profile
II) Investment bankO Criticisms
O Conflicts of interest
O Compensation
III)Present situationO History
O - 1929: regulation program O - 1933: Glass-Steagall act
O - 1984: Bérégovoy reform
O - 1999: Gramm-Leach-Bliley Act
III)Present situationO Universal bank definition
Conclusion: O Issues:
-Moral hasard
-Systemic risk
Francois Hollande wants to separate banking activity that is useful for investment and employment from speculation.
END