Finacial Services

Finacial Services Paper details: Project Assignment 2 : Objectives and Services For this project assignment, you need to establish goals and objectives for the Marques BBS Bank. You will also need to highlight the range of limited service facilities the bank would be prepared to offer and advise on suitable branch locations . This project assignment will make up part of your Course Project . See Page 8 for Guidelines. Project Assignment 2: Objectives and Services - 3 - Marques BBS Bank Plc is a city centre bank in your locality*. It was established as a result of a merger in 1995. Marques BBS has numerous bank branches and ATMs located regionally and nationally, offering a number of limited facility services. As of 2012  the  bank  amassed  13  million  personal  customers  and  small  business  accounts.  The  bank  offers  a  full  range  of  banking services for both personal and business banking facilities. Marques BBS Bank Plc: ? Employs more than 75,000 people ? Holds approximately 2,000 branches ? Holds approximately £1,250, 00b in assets Project Assignment 2: Objectives and Services - 4 - General Facts ? The Marques BBS foundation supports local, regional and national charities ; ? Offers a personal service and wealth advice for general and long-term investing, including retirement planning; ? Provides comprehensive expert financial services to businesses; ? Also caters for businesses with over £10 million turnover; ? Has a broad range of products and services for customers traveling abroad for personal or businesses reasons. Mission Statement "Our  mission  is  to  help  build  strong  and  sustainable  communities  by  upholding  collaborative,  innovation  and  healthy relationships with the community in which we work.” Vision Statement “Marques BBS vision is to strive to be th e best financial institution employees can work for, in addition to being the number 1 bank choice for its customers.” *In 2011, Marques BBS Bank contributed over £12 million to over 2,000 organizations. Employees of the bank also volunteered in numerous programmes to help those in their community. Diploma in Financial Services The Changing Financial Service Sector ? Holding Company Organisations The Changing Financial Services Sector Fitzwilliam Institute Group - 2 - Objectives After completing this topic, you should have an understanding of: ? Small and large banks ? Financial holding companies (FHC ) ? Banking trends in Europe ? Financial objectives The Changing Financial Services Sector Fitzwilliam Institute Group - 3 - Introduction The following topic provides detailed definitions on the term ‘banking holding company’ and ‘financial holding company’, giving examples of holding companies in the US and highlight ing their advantages as well as their evident disadvantages. This topic also discusses reasons behind the growth in holding companies over the past few decades, and the impact organisational structure  places  on  profits  gained  and  efficiency.  This  topic  als o  gives  a  brief  introduction  into  the  future  of  the  banking industry . The Changing Financial Services Sector Fitzwilliam Institute Group - 5 - Growing Number of Bank Holding Companies In recent years, there has been a marked increase in the number of holding companies, as a result of : ? Greater ability to raise funds and access ‘Capi tal Markets’ (gaining long term funds by dealing in stocks, bonds and other forms of investment); ? A bank holding company’s ability to access greater debt capital (through taking out a loan) compared to equity capital (money does not have to be repaid) in c omparison to financial firms independent of bank holding companies; ? Their  tax  benefits:  bank  holding  companies  are  able  to balance profits  raised  from  one  business  within  the  holding company, with losses accumulated by another financial firm also affilia ted with the same company; ? Their authorisation to incorporate non - banking businesses. The Changing Financial Services Sector Fitzwilliam Institute Group - 6 - Bank Holding Companies in the US The  following  table  (as  illustrated  by  Rose  &  Hudgins)  represents  the  largest  bank  holding  companies  active  in  the  US. Typically, the  majority  of  holding  companies  own  just  one  bank  in  addition  to  other  non - bank  financial  institutions.  Only  a small percentage of bank holding companies acquire more than one bank, however these holding companies hold nearly 70% of total assets in the US banking system. Bank Holding Company Headquarters Total Assets ($Bill) Citigroup, Inc New York $2,221 Bank of America Corporation North Carolina $1,536 J P Morgan Chase & Co New York $1,458 Wachovia Corporation North Carolina $720 Taunus Corpor ation New York 579 Wells Fargo & Company California 540 HSBC North American Holdings Inc Illinois 484 US Bancorp Minnesota 223 SunTrust Banks Inc Georgia 180 Diploma in Financial Services The Changing Financial Service s Sector ? Unit Banking & Branching The Changing Financial Services Sector Fitzwilliam Institute Group - 2 - Objectives After completing this topic, you should have an understanding of: ? Unit banking organisation s ? Branching organisations ? Limited service facilities ? Top bank profiles