US Financial Services Industry (USA Finance Sector)
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US Banking Sector
US Banking Sector
The banking sector of US serves a wide range of clients including individuals and institutions. There are different types of banks in this sector that offer various services including accepting deposit, investment banking, corporate banking and a lot more. Leading banks in USA are as follows:
- Citigroup
- Wells Fargo & Company
- Bank of America Corp.
- HSBC North America Inc.
- JP Morgan Chase & Company
- US Bancorp
- Wachovia Group
- Bank of the New York Mellon Group
- Taunus Corp.
- Suntrust, Inc.
US Finance Industry
US finance industry comprises of a number of sub-industries like insurance industry, mortgage industry, investment services and financial advisory services for example. US finance industry has a track record of good performances.
World Bank Report on US Banking and Finance Industry
According to the reports released by World Bank about the financial transaction on US banking sector in 2004, credit facilities offered by this sector are more than any of member countries of OECD or other developing countries.
Importance of Mergers and Acquisitions in US Banking Industry
A significant trend in context of US banking sector is the merger and acquisition activities that have been going on recently. Growth prospects of US banking sector are very moderate and so mergers and acquisitions are the best options to increase revenue generation for individual banks and also for the sector on a whole.
Challenges before US Financial Services Sector
Notwithstanding the depth of the US financial services industry, there are certain challenges that face US financial services industry. Sub-prime mortgage crisis of 2007 has hit the entire sector hard. At present, US financial sector is trying to start afresh. Most of the big names have sacrificed a huge amount of profit in the 2007 fiscal due to the sub-prime mortgage crisis. Some financial services providers have even faced huge losses. At the same time, there are a number of banking institutions like Goldman Sachs that have made good profits even from such market conditions. Number of such institutions is limited however. Slowdown in housing market and low property prices have also contributed to the already critical situation.
Growth Pattern of US Financial Services Industry
Economic growth rate of the United States of America was very low in first quarter of 2007 but gradually it recovered and ended the year with some silver lining. The financial services industry of the country has followed the same growth pattern. It is also expected that demand for banking services as well as other financial services in the U.S. market would increase in the near future and that too, at a good rate.
