DUBLIN, Ireland - (Business Wire) Research and Markets (
http://www.researchandmarkets.com/research/a38985/north_america_bank) has announced the addition of the "North America Banking Sectors: A Company and Industry Analysis (June 2008)" report to their offering.
This report updates the previous North American banking report, focusing on the markets in Canada and the United States.
Current Environment - Key Points
- The US banking industry, which was hit hard by the worst credit crisis in decades, began the year 2008 still struggling
- The industry over the last six months saw massive layoffs, dividend cuts and several high-profile executives ousted, as well as a string of depressed earnings
- The Federal Reserve trimmed its federal funds rate by three quarters of a point to 3.5% on January 22
- On January 30, the central bank lowered its rate again to 3% to stabilize financial markets
- When the credit crisis heated up, M&As in the US banking industry slowed after years of bustling activity
- In January 2008, the Bank of Canada (BOC) injected C$874 million (US$853.59 million) into the capital markets to improve liquidity
Earlier, it pumped C$1.64 billion (US$1.60 billion)
- Over the six-month period ended January 31, the S&P/TSX Composite Index was down 713.5 points to 13,155.10
- Canadian banking stocks were under pressure as concerns about overall financial stability escalated
Industry Profile - Key Points
- As of September 2007, Federal Deposit Insurance Corporation (FDIC) figures put assets and deposits held by the US banking industry at US$12.71 trillion and US$8.18 trillion respectively
- As profit margins declined and credit markets continued to tighten, US banks were forced to shore up their capital bases to bolster weakening balance sheets
- In the US, new regulations aimed at wiping out predatory and deceptive mortgage lending practices that helped lead to the credit crisis, were proposed on December 18
- Banks in Canada represent the largest portion of the Canadian financial services sector, with about C$2.59 trillion (US$2.53 trillion) in domestic assets as of December 31, 2007
- Canadian banks are warming towards full compliance and have taken the lead in implementing the Basel II Accord starting in the first quarter of fiscal 2008
Market Trends and Outlook - Key Points
- The number of home repossessed shot up in the final quarter of 2007 as more homeowners fell behind on their mortgage payments
- Banks and mortgage companies, hit by massive losses and falling profits, are bracing for another round of job eliminations; this time on a larger scale
- Historic losses at many banks and their poor stock performances are forcing them to cut dividends to conserve cash
- Canadian banks are expanding beyond home markets and growing their presences, especially in Latin America and Europe
- In order to drum up business, banks in Canada are continuing to focus on building up retail banking operations
- In Canada, further rate cuts are probable due to the worsening US economy and continued market turmoil that has taken its toll on Canada's economy.
| Key Topics Covered: |
| |
| - Current Environment |
| - US |
| - Canada |
| - Sector Overview |
| - Sector Performance |
| - Leading Banks |
| - Mergers and Acquisitions Industry Profile |
| - US |
| - Canada |
| - Industry Size and Value |
| - Industry Highlights |
| - Policy and Regulatory Environment Market Trends and Outlook |
| - US |
| - Foreclosures and Delinquencies Escalate Sharply |
| - More Job Eliminations in the Pipeline |
| - More Banks Likely to Slash Dividends |
| - Market Outlook Market Trends and Outlook |
| - Canada |
| - Canadian Banks Look Beyond their Home Market |
| - Banks Sharpen their Retail Banking Focus |
| - The Bank of Canada Enters Defensive Mode - Market Outlook |
For more information visit http://www.researchandmarkets.com/research/a38985/north_america_bank.
Research and Markets
Laura Wood
Senior Manager
press@researchandmarkets.com
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