Discuss How These Changes Might Affect Stakeholder

Discuss how these changes might affect stakeholder relationships your organization has with pecuniary institutions. With our verdants transition to a services economy and covert to an information economy, it has led to the financial services industry by rights the single- roundst contributor to the U.S. gross domestic product (GDP). In new-fangled years, technological, economic, and restrictive changes have had an affect on customers and stakeholders relationships with financial institutions. For example, the fiscal serve Modernization Act of 1999 allows for banks to flux or merge with other financial entities. The result has been the burn down of global financial conglomerates that offer a range of products and services across banking, securities trading, and insurance. Removing restrictive 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 bank s, limn 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 portion (7,411 to 2,784) gentleman the number of coarse banks, defined by the FDIC as having more than 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 itsy-bitsy banks grew by, on average, only 1.2 percent annually while the assets of large banks, driven in large part by more and more larger mergers and acquisitions, grew by, on average, 5.8 percent annually (Tallon, 2010, p. 220). With the implemetaion of the Financial serv! ice Modernization 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 innovational banking models such as...If you want to get a full essay, legislation it on our website: OrderCustomPaper.com

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