12 january 2017, 02:11
Changes in the institutional structure of financial markets
After world war II one of the features of development of financial markets has been rapid growth among financial institutions non-banking institutions. Over the last 20 years, this trend has only intensified. In some years of the first decade of the XXI century total global assets of non-Bank financial institutions are even higher than the banks ' assets. This was partly due to the deployment processes of securitization, i.e. the increasing role of the securities market.
Nevertheless, the key financial institutions in the world are banks whose total share in the global assets of financial institutions in 2009 was slightly higher than the half accounting for more than 96 trillion. or 542% Fig. 3.14.
A special case of the USA where the share of commercial and savings banks in the assets of financial institutions decreased from 47% in 1970 to 20-22% in 2000-2007, while the growth in the share of pension funds, mutual funds, brokers, dealers and other institutions directly connected with the securities market. However such a low share of banks specific to the USA. In the second half of the 1990s, the share of banks in the assets of financial institutions amounted to 50-60% in the UK and the Netherlands and 70-80% in France, Germany, Italy and Switzerland.
In the 1990s and 2000s, trends were observed which took place in the past, traditional banks have increasingly become financial conglomerates offering services characteristic of the companies on securities, insurance companies and portfolio managers. You can say that the relatively decreased importance of traditional banking functions of taking deposits and granting loans.
Simultaneously, non-Bank financial institutions such as mutual funds, company securities broker-dealer company or investment banks pension funds insurance companies more and more actively compete with banks both on the liabilities and assets. Increased competition contributed to the fact that non-financial corporations increasingly provide financial services through the established subsidiary Finance companies and banks.
The financial sector became less segmented, the boundaries between banks and banks increasingly blurred. On the other hand, in many countries, banks have stepped up activities in the securities market and derivative financial instruments. There are many cases of acquisition by a major global banks, large brokerage firms.
Banks have increasingly established subsidiaries in the securities. However the crisis of 2008 has made adjustments to the process. Banks began to manage assets as you build your own units and acquiring firms portfolio management
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