Workshop "The rise (and decline) of retail banking - 1960s to 2020s"
In 1967 the American economist Raymond Goldsmith forecast the imminent decline of commercial high street banks. While necessary in the early stages of modern economic growth as a means of mobilizing savings and allocating capital, they would lose their usefulness as the financial structure of maturing economies diversified and new, more specialized financial institutions assumed their core functions. Goldsmith’s argument looked convincing. By the mid-1960s commercial banks’ assets to GDP ratio was at a postwar low in many western countries, that is to say, economies were growing faster than the banks. At the same time that diversification did happen as countries started relaxing capital market controls and new institutions seized the opportunities. However, Goldsmith was fundamentally wrong. From its mid-1960s nadir, bank assets to GDP more or less exploded, to reach new, unprecedented peaks around the turn of the millennium. Commercial banks completely reinvented themselves as retail banks. By the mid-1990s the retail banking model again started showing signs of strain in the form of declining profitability. Following the 2008 financial crisis retail banking entered a deep identity crisis – retail operations that had turned from profit centres into core problems. Is there a way forward for retail banking? If so, where should it go?
|Event dates:||2016-11-24 – 2016-11-25|
|Deadline Call for Papers:||2016-08-15|
|Organizer:||Gesellschaft für Unternehmensgeschichte e.V. GUG European Association for Banking and Financial History EABH|
|Conference venue:||Frankfurt am Main|
Andrea Schneider (email@example.com)
|Classification:||G2 - Financial Institutions and Services ; N2 - Financial Markets and Institutions|
|Event type:||Seminare, Summer Schools, Symposien, Workshops; Seminars, Summer Schools, Symposiums, Workshops|