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Mathematics & Economics
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English (U.S.)
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Topic:

Risks That Large Banks May Take

Coursework Instructions:

As you can see in the following charts:
Big Bank Chart
https://www(dot)visualcapitalist(dot)com/the-banking-oligopoly-in-one-chart/
Top 10 Banks in the World
https://markets(dot)businessinsider(dot)com/news/stocks/top-10-banks-in-the-world-2019-2019-7-1028330545#8-citigroup-us-158-billion3
much consolidation has taken place in the banking industry as a result of deregulation. While this consolidation has led to economies of scale in the industry, some banks are now considered "too big to fail" and may have tendencies to take excessive risks.
For this assignment, please take a look at the two articles:
Fed's Bullard says largest banks my still be too big
https://www(dot)stltoday(dot)com/business/local/fed-s-bullard-says-largest-banks-may-still-be-too/article_aaba8067-d0ff-53cd-8a2a-395049545baa.html
- this article shares thoughts from St. Louis Fed President James Bullard. Mr. Bullard believes, “New regulations have made the financial system safer but have also strengthened the market position of the largest banks and may discourage innovation.”
Five Innovation Trends That Will Define Banking in 2019
https://thefinancialbrand(dot)com/77869/innovation-trends-banking-ai-api-personalization-payments/
- this article discusses innovation trends that are predicted to define banking this year.
Share your thinking about if you are you personally concerned about the risks that large banks may take, which could potentially weaken the U.S. economy, or do you think it is necessary for banks to be of that size in order to compete in global markets? Why?
What do you think?

Coursework Sample Content Preview:

Banking
Student’s Name
Institutional Affiliation

Banking
The “Big Four” biggest retail financial institutions in the United States of America (USA) include JPMorgan Chase, Citigroup, Wells Fargo, and Bank of America. They hold around 45% of customer bank deposits, which is about $4.6 trillion (Desjardins, 2016). The ten largest banks worldwide are ICBC ($338 billion), China Construction Bank ($287 billion), Agricultural Bank of China ($243 billion), Bank of China ($230 billion), JPMorgan Chase ($209 billion), Bank of America ($189 billion), Wells Fargo ($168 billion), Citigroup ($158 billion), HSBC Holdings ($147 billion), and Mitsubishi UFJ ($146 billion) (Khan, 2019). In my opinion, large banks are likely to weaken the economy of the USA despite the fact that their size enables them to be competitive in the global market.
As James Bullard, St. Louis Fed President, says, new regulations make banks safer by strengthening their market position. However, these financial institutions should not be perceived as if they will be around in the next ten decades (Schneider, 2016). This kind of banking monopoly will have adverse effects on innovation in the financial sector. Currently, many financial institutions are reassessing their organizational structures and digitizing their business processes. Some of these banks are innovating targeting to expand their services by integrating different payment methods, such as the blockchain technology (Marous, 2018). In reality, empowering big financial institutions will li...
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