Chapter 3.1. US Banking Industry
Even today, while being one of the most international institutions, about two-thirds of Citigroup’s revenues and profits come from the US. Since the home market still plays a crucial role in the company performance we should examine it with more scrutiny.
In the last three decades US banking industry went through major transformations. In the first row, industry crises in earlier 1990s along with governmental deregulation (the Gramm-Leach-Bliley act), as well as technological advancing, all contributed to rapid mergers and acquisitions. From mid-1980s to today, the number of US banks felt by more than 40% while number of branches continued rising along with number of customers and area coverage.
Since 1995 there were more than 200 banks merges, though the majority of them were between different service providers trying to add more range under to company’s product portfolio. Other had the purpose to bring extra coverage in new territories. Today the industry is dominated by massive holdings like Citigroup, Bank of America, and JPMorgan Chase.