Commercial banking

& Investment

banking

introduction

Types of bank:O - retail bankingO - business bankingO -corporate bankingO - private bankingO - investment banking

I) Commercial bankO Commercial bank's definition:A commercial bank is a type of retail bank that provides services, such as accepting deposits, giving business loans and basic investment products.

I) Commercial bankO Commercial bank's activity:

- Saving

- Credit operation

- Propose services

Commercial Banking

OCommercial Bank OBusiness Bank

PART I

II) Investment bankO Investment bank’s definition

two main lines of business :

- Trading securities

- The promotion of securities

II) Investment bankO Organizational structure

O - front office activities

O - middle office activities

O -back office activities

Rank Company Fees ($m)

1 JP Morgan Chase 5,261.17

2 Bank of America 4,417.39

3 Goldman Sachs 3,917.98

4 Morgan Stanley 3,527.09

5 Citigroup 3,417.13

6 Crédit Suisse 3,216.74

7 Deutsche Bank 3,099.44

8 Barclays 2,966.35

9 UBS 2,061.56

10 Wells Fargo 1,814.50

Comparison

«Commercial banking » Vs

« investment banking »

Glass–Steagall Act

The 1929 Wall Street Crash

the financial crisis of 2008

X

Industry profile

II) Investment bankO Criticisms

O Conflicts of interest

O Compensation

III)Present situationO History

O - 1929: regulation program O - 1933: Glass-Steagall act

O - 1984: Bérégovoy reform

O - 1999: Gramm-Leach-Bliley Act

III)Present situationO Universal bank definition

Conclusion: O Issues:

-Moral hasard

-Systemic risk

Francois Hollande wants to separate banking activity that is useful for investment and employment from speculation.

END