Discuss How These Changes Might Affect Stakeholder

Discuss how these changes might affect stakeholder relationships your organization has with pecuniary institutions. With our bucolics transition to a services economy and subterranean to an information economy, it has led to the financial services industry sightly the single- roundst contributor to the U.S. gross domestic product (GDP). In youthful years, technological, economic, and restrictive changes have had an affect on customers and stakeholders relationships with financial institutions. For example, the monetary serve Modernization Act of 1999 allows for banks to link or merge with other financial entities. The result has been the uprising of global financial conglomerates that offer a range of products and services across banking, securities trading, and insurance. Removing regulatory obstacles has helped competition but it also led to record consolidation. From 1990 to 2008, the go of FDIC-insured banks fell by 43 portion (12,343 to 7,085). Small ban ks, assign by the FDIC as having less than $100 million in assets, were the hardest hit. From 1994 to 2008, the number of teensy banks declined by 62 pct (7,411 to 2,784) homo the number of enlarged banks, defined by the FDIC as having more than than $100 million in assets, grew by 35 percent (3,183 to 4,301).

As a result, over this 15?year period, the assets of shrimpy banks grew by, on average, only 1.2 percent annually while the assets of large banks, driven in large part by progressively larger mergers and acquisitions, grew by, on average, 5.8 percent annually (Tallon, 2010, p. 220). With the imp lemetaion of the Financial service Moderniza! tion Act, it created a situation that allowed the five largest banks (JPMorgan, Bank of America, Citigroup, rise Fargo, and U.S. Bank) to control 50 percent of all U.S. bank assets. Banking is peculiarly amenable to a service science review in light of the many changes affecting the sector and the threats that banks face from mod banking models such as...If you want to get a full essay, jurisprudence it on our website: OrderCustomPaper.com

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