Much of the intense competition in the financial services industry comes from pro-ducts that are the most standardized, such as mortgages, automobile loans, money market accounts, savings accounts, and so on. These products will offer very low profit margins. If you managed a small community bank today, devise a strategy to compete in this environment.
Answer to relevant QuestionsWhat are the issues surrounding “too big to fail”? Is it possible for Congress to simply “outlaw” TBTF institutions? Why or why not? Federal deposit insurance used to cover a maximum of $ 40,000 per eligible account. It was later raised to $ 100,000 per account and is now $ 250,000 per eligible account. What cost and/ or risk does this present to the ...In each pair below, indicate which asset exhibits the greatest credit risk. Describe why. a. Commercial loan to a Fortune 500 company or a loan to a corner grocery store b. Commercial loans to two businesses in the same ...What are the primary sources of risk that depository institution managers face? Describe how each risk type potentially affects performance. Provide one financial ratio to measure each type of risk and explain how to ...What are the primary sources of noninterest income for both a small community bank and a large bank with many subsidiaries and global operations?
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