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Commercial banking & Investment banking

Commercial banking & Investment banking

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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 : - PowerPoint PPT Presentation

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Page 1: Commercial  banking  & Investment banking

Commercial banking

& Investment

banking

Page 2: Commercial  banking  & Investment banking

introductionTypes of bank:O - retail bankingO - business bankingO -corporate bankingO - private bankingO - investment banking

Page 3: Commercial  banking  & 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.

Page 4: Commercial  banking  & Investment banking

I) Commercial bankO Commercial bank's activity:

- Saving

- Credit operation

- Propose services

Page 5: Commercial  banking  & Investment banking

Commercial Banking

OCommercial Bank OBusiness Bank

PART I

Page 6: Commercial  banking  & Investment banking

II) Investment bankO Investment bank’s definition

two main lines of business :

- Trading securities

- The promotion of securities

Page 7: Commercial  banking  & Investment banking

II) Investment bankO Organizational structure

O - front office activities

O - middle office activities

O -back office activities

Page 8: Commercial  banking  & Investment banking

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

Page 9: Commercial  banking  & Investment banking

Comparison

Page 10: Commercial  banking  & Investment banking

«Commercial banking » Vs

« investment banking »Glass–Steagall

Act

The 1929 Wall Street Crash

the financial crisis of 2008

X

Page 11: Commercial  banking  & Investment banking

Industry profile

Page 12: Commercial  banking  & Investment banking
Page 13: Commercial  banking  & Investment banking

II) Investment bankO Criticisms

O Conflicts of interest

O Compensation

Page 14: Commercial  banking  & Investment banking

III)Present situationO History

O - 1929: regulation program O - 1933: Glass-Steagall act

O - 1984: Bérégovoy reform

O - 1999: Gramm-Leach-Bliley Act

Page 15: Commercial  banking  & Investment banking

III)Present situationO Universal bank definition

Page 16: Commercial  banking  & Investment banking

Conclusion: O Issues:

-Moral hasard

-Systemic risk

Francois Hollande wants to separate banking activity that is useful for investment and employment from speculation.

Page 17: Commercial  banking  & Investment banking

END