2023-05-06 21:03:21
A few years ago, bank margins narrowed, before rates rose. Regulatory requirements are also stricter, for example requiring more capital than a few years ago to cover risks. To survive, profitability remains the key word. If it is not achieved, solutions must therefore be found. Banking concentration is one of them, allowing for volume.
-90% in the United States
Several American banks – including Silicon Valley Bank or First Republic – have recently experienced difficult situations and had to be taken over. But the phenomenon is not new, the number of banks has been decreasing for a long time.
According to the financial group ODDO BHF, there were more than 30,000 banks in the United States a century ago. Today, their number has fallen by nearly 90% to around 4,000 of more or less importance. Three-quarters of deposits in the United States are controlled by barely 15 banks.
Same thing in Switzerland
The SNB also holds revealing statistics of the phenomenon for Switzerland. In 1987, the country had 622 banks. In 2021, they were only 239. Banking concentration therefore seems to affect beyond the United States.
All segments are affected: large banks, private bankers and cantonal banks are less numerous. Finally, with the disappearance of Credit Suisse, UBS alone would hold 55% of deposits in our country.
Radio subject: Sylvie Belzer
Web adaptation: Emilien Verdon
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