Bank Mgt 5th Ed. Chap. 1-Modified

Dominated by 1998 banks had only a 20 market share

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Unformatted text preview: ted financial markets. dominated By 1998, banks had only a 20% market share. Negotiable CDs were introduced in 1962, which Negotiable gave money managers more avenues for idle cash. cash. Inflation brought on disintermediation as Inflation depositors withdrew funds for high yielding investments. investments. Other sources of funds other than deposits were Other sought by bankers to fill the deposit void.* sought HISTORY OF BANKING: PROBLEMS OF THE 1970s & 1980s PROBLEMS Competition for market share was fierce. Merrill Lynch introduced cash management. The thrift industry virtually failed--2/3rds of S&Ls In addition to loan problems, inflation & economic In downturn contributed to bank & s&l failures. downturn “To big to f...
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