Assignment 2

The Business Environment of the Retail Banking Industry Within Ireland By Barry Crosbie Table of Contents Contents Introduction………………………………………3/4 Macro-Environment…………………………….4-9 Competitive Environment………………………10-12 Conclusions and Recommendations………….12 Appendices……………………………………….13-15 Introduction Scope of Industry: Retail banking involves taking deposits and advancing overdrafts and other loans, dealing with the personal, small business, farming, non-profit, corporate and government sectors. It also involves the provision of money transmission services8, with extensive branch and ATM networks and a clearing system for the settlement of non-cash retail payments. This assignment will analyse the enviornment of the banking industry, with relation to various high street banks, credit unions and building societies within Ireland Will use the PEST framework to analyse the macro enviornment of the banking industry within Ireland. This is an analysis of various important factors to an industry which includes political, economic, social and technological. Will analyse the cometitive enviornment of the banking industry through ‘Porter’s Five Forces’. It is a tool to really understand how strong you are competitvely at present and where you want to be. Main sources of information will be derived from the World Wide Web. *Macro-*Environment Political Factors: {text:bookmark-start} {text:bookmark-start} {text:bookmark-start} Bank regulation 'badly needs reform', says Brian Lenihan minister for finance. {text:bookmark-end} {text:bookmark-end} {text:bookmark-end} {text:bookmark-start} {text:bookmark-start} {text:bookmark-start} At present there is a severe problem with the banking industry in Ireland as a matter of fact on a global scale. Because of lenient financial regulations over the last 10 years in regards to the distribution of credit, banks, building societies and credit unions are in disarray. People cannot pay back there loans and banks in turn