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Unformatted text preview: es industry may reduce the ability to
diversify and potentially add to the net regulatory burden faced by FIs. Trends in the United States
In Table 1–3 we show the changing shares of total assets in the U.S. financial services
industry from 1860 to 2000. A number of important trends are clearly evident: Most
apparent is the decline in the total share of depository institutions since the Second
World War. Specifically, the share of commercial banks declined from 55.9 to 35.6 percent between 1948 and 2000, while the share of thrifts (mutual savings banks, savings
associations, and credit unions) fell from 12.3 to 10.0 percent over the same period.
Similarly, life insurance companies also witnessed a secular decline in their share,
from 24.3 to 16.8 percent.
The most dramatically increasing trend is the rising share of investment companies,
with investment companies (mutual funds and money market mutual funds) increasing
their share from 1.3 to 17.0 percent between 1948 and 2000. Investment companies
differ from banks and insurance companies in that they give savers cheaper access to...
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This document was uploaded on 03/09/2014 for the course ACC 301 at HELP University.
- Spring '09