A comparative analysis of the US and EU retail banking markets - Wsbi

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Table F: Share of US banking industry assets by size group, 1984 and 2003 1984 2003 Less than $ 100 million 8% 2% $ 100 million to $ 500 million 14% 8% $ 500 million to $ 1 billion 6% 4% $ 1 billion to $ 10 billion 30% 13% Greater than $ 10 billion 42% 73% Source: "The declining number of US banking organisations: Will the trend continue ", FDIC study, February 2004. Table G: Evolution of concentration in the US, 1980-1998 (percent of assets) 1980 1985 1990 1995 1998 Top 10 18.6% 17.0% 20.0% 25.6% 36.7% Top 25 29.1% 28.5% 34.9% 43.0% 51.2% Top 50 37.1% 40.5% 48.9% 55.8% 62.6% Top 100 46.8% 52.6% 61.4% 66.9% 70.9% Source: "Bank Mergers and Banking Structure in the US, 1980-98", Stephen A. Rhoades, August 2000 - NIC database, Federal Reserve Board. Table H: Share of industry assets and deposits held by the US's 25 largest banking companies (Pro-forma), year end 2003 Share of Cumm. Domestic Share of Cumm. Total assets* industry Percentage deposits industry domestic Percentage Ranking Bank holding companies (in $ billion) assets of assets (in $ billion) deposits of deposits 1 J.P. Morgan Chase & Co. / Bank One ** 1,009 11.11 11.11 345 6.61 6.61 2 Bank of America / Fleetboston ** 870 9.58 20.69 512 9.82 16.43 3 Citigroup Inc. 796 8.77 29.46 181 3.47 19.90 4 Wells Fargo & Company 380 4.19 33.65 241 4.62 24.52 5 Wachovia Corporation 362 3.99 37.64 213 4.09 28.61 6 Washington Mutual Inc. 276 3.04 40.68 168 3.23 31.84 7 U.S. Bancorp 192 2.12 42.80 114 2.19 34.03 8 U.S. City Corporation 132 1.45 44.25 61 1.17 35.20 9 Suntrust Banks, Inc. 125 1.37 45.62 76 1.47 36.67 10 ABN Amro Holding N.V. 107 1.18 46.80 46 0.88 37.55 11 HSBC Holdings PLC 98 1.08 47.88 45 0.86 38.41 12 Fifth Third Bankcorp 95 1.05 48.93 51 0.97 39.38 13 BB&T Corporation 95 1.04 49.97 60 1.16 40.54 14 The Bank of New York Company, Inc. 90 0.99 50.96 34 0.65 41.19 15 Keycorp 85 0.93 51.89 48 0.92 42.11 16 State Street Corporation 80 0.89 52.78 13 0.25 42.36 17 Golden West Financial Corp. 80 0.89 53.67 45 0.87 43.23 18 The Royal Bank of Scotland Group PLC 78 0.86 54.53 58 1.12 44.35 19 The PNC Financial Services Group, Inc. 64 0.71 55.24 45 0.87 45.22 20 MBNA Corporation 59 0.64 55.88 31 0.59 45.81 21 Comerica Incorporated 53 0.58 56.46 40 0.78 46.59 22 Southtrust Corporation 52 0.57 57.03 33 0.62 47.21 23 Allied Irish Banks, P.L.C. 50 0.55 57.58 31 0.59 47.80 24 Mitsubishi Tokyo Financial Group, Inc. 48 0.53 58.11 35 0.67 48.47 25 Amsouth Bancorporation 46 0.50 58.61 29 0.56 49.03 Total top 25 banking companies 5,322 58.61 2,555 49.03 Notes: * Non-bank assets are excluded ** Pro-forma data includes two pending mergers: Bank of America and Fleetboston, J.P. Morgan Chase & Co. and Bank One Corp. Source: FDIC - Call and Thrift Financial Reports 154
Table I: Structure of the liabilities of the US FDIC-insured institutions, 1992 - 2003 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Non-bank deposits 80.7% 77.7% 73.9% 72.5% 72.3% 70.8% 69.9% 68.6% 68.4% 69.4% 69.4% 69.1% Interbank deposits 3.3% 3.7% 4.1% 4.3% 4.0% 3.7% 3.6% 3.3% 3.6% 3.0% 3.3% 3.2% Federal funds purchased & repurchase agreements 6.6% 7.1% 7.9% 7.8% 7.2% 8.4% 8.4% 8.4% 8.1% 8.2% 8.4% 7.5% Trading liabilities n.a. n.a. 2.6% 2.9% 2.9% 3.7% 3.5% 3.0% 3.1% 2.6% 3.2% 3.3% Other borrowed funds 5.8% 7.5% 8.1% 8.8% 10.0% 9.5% 10.4% 12.7% 12.5% 11.8% 11.1% 12.4% Subordinated debt 0.9% 0.9% 0.9% 0.9% 1.0% 1.2% 1.3% 1.3% 1.3% 1.4% 1.3% 1.3% All other liabilities 2.7% 3.0% 2.4% 2.7% 2.7% 2.7% 3.0% 2.8% 3.0% 3.5% 3.4% 3.2% Source: ESBG calculations based on FDIC data Table J: Structure of the assets of the US FDIC-insured institutions, 1992 - 2003 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Cash and due from depository institutions 7.34% 6.46% 6.55% 6.24% 6.41% 6.28% 5.92% 5.74% 5.33% 5.41% 5.03% 4.70% Securities 22.94% 23.63% 22.17% 20.59% 18.94% 18.54% 19.13% 19.44% 18.24% 18.62% 19.36% 19.51% Federal funds sold & reverse repurchase agreements 3.76% 3.41% 3.09% 3.60% 3.10% 4.48% 4.49% 3.44% 3.95% 4.39% 4.02% 3.89% Net loans and leases 57.89% 57.86% 58.61% 59.92% 61.36% 59.74% 59.62% 60.79% 61.26% 59.50% 58.89% 58.94% Bank premises and fixed assets 1.42% 1.42% 1.39% 1.35% 1.35% 1.29% 1.26% 1.24% 1.18% 1.13% 1.10% 1.07% Other assets 6.65% 7.21% 8.18% 8.30% 8.84% 9.67% 9.58% 9.35% 10.04% 10.95% 11.59% 11.89% Source: ESBG calculations based on FDIC data. Table K: Composition of loans to the private sector in the euro area and the US, 2002 - 2004 2002 2003 2004 Households Business Households Business Households Business Consumer Housing Other Consumer Housing Other Consumer Housing Other Austria 12% 18% 3% 67% 11% 20% 4% 4% 12% 23% 10% 55% Belgium 5% 35% 10% 50% 5% 39% 9% 9% 4% 42% 9% 45% Germany 10% 41% 12% 37% 8% 42% 14% 14% 8% 43% 14% 35% Spain 8% 34% 9% 49% 7% 35% 10% 10% 7% 36% 9% 49% Greece 12% 25% 0% 63% 13% 27% 1% 1% 15% 29% 1% 55% France 11% 32% 7% 50% 11% 34% 6% 6% 11% 36% 6% 47% Finland 8% 39% 11% 41% 8% 41% 11% 11% 8% 42% 11% 39% Italy 3% 16% 15% 66% 4% 17% 14% 14% 4% 19% 13% 64% Ireland 13% 38% 1% 48% 9% 40% 3% 3% 8% 41% 3% 48% Luxembourg 2% 11% 23% 64% 2% 14% 23% 23% 2% 16% 22% 59% Netherlands 4% 53% 4% 39% 4% 54% 4% 4% 4% 55% 4% 37% Portugal 5% 40% 6% 48% 5% 41% 6% 6% 5% 41% 6% 48% Euro area 8% 35% 10% 47% 7% 36% 10% 10% 7% 37% 10% 45% US 9% 68% 3% 20% 8% 74% 2% 17% 6% 62% 2% 30% Source: ESBG calculations based on data from the "Aggregated balance sheet of euro area monetary financial institutions, excluding the Eurosystem" (National Bank of Belgium) and "Flow of Funds Accounts of the Unites States", Board of Governors of the Federal Reserve System. 155
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September 2006 RESEARCH A COMPARATI
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IE UK FR BE NL LU DK DE SE CZ AT SL
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The following WSBI/ESBG committees
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4 Regulation and supervision compar
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6.5 Issues of competition in retail
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To finish, if we had to pick from a
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In the US, credit institutions have
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Following the same logic, the EU co
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In that context, it is tempting to
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3. INSTITUTIONAL COMPARISON 3.1 Sec
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The market share of the US banking
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FDIC-insured commercial banks are i
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The subsidiary stock institution is
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Regulatory reform over the past thi
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State credit unions were first exem
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There has however been much effort
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3.2.2.2.2.2 Ownership and corporate
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Hermann Schulze-Delitzsch and Fried
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In contrast, building societies in
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The commitment of savings banks is
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4. REGULATION AND SUPERVISION COMPA
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In addition, for regulations define
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The European Parliament has to be k
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In fact, it should be mentioned her
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As far as coordination at the feder
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Despite the trend towards the estab
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Another important factor in the cho
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In the European Union, contrary to
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Although younger than CESR, both CE
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4.2.5.1.1.1.1 Limitation of the geo
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4.2.5.1.1.3 Recent trend: regulatio
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Another important common feature be
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The best execution rule was first m
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4.3.2.2.4 National Market System ru
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The ISD set a basis for the develop
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Best execution rules exist in both
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The decline of savings institutions
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Relative to population, the Europea
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5.2.2 Size of credit institutions 5
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5.2.2.2 European Union In Europe, t
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5.2.3 Concentration and consolidati
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5.2.3.2 European Union Average CR5
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In terms of the nature of consolida
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100% Graph 9: Structure of the asse
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In terms of growth of the volume of
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5.3.2 Efficiency of credit institut
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Table 16: Evolution of the Return o
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Finally, looking at cost-income rat
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9. The last couple of decades have
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Page 122 and 123: 6.2.3.1.2 Lenders to small business
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Page 150 and 151: MoU Memorandum of Understanding OTC
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Page 158 and 159: Table R: Number of ATMS in the EU a
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A comparative analysis of the US and EU retail banking markets - Wsbi

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