While the industry performed more strongly than the overall banking sector over the five-year period, acquisitions and troubled parent companies caused the number of industry participants to decline. As a result, asset growth and interest income stagnated and revenue grew only slightly. Moving forward, operators in this industry, particularly commercially owned industrial banks, will serve as drivers of innovation in the banking sector helping to serve a niche segment of the banking industry.
Industrial banks, also known as industrial loan companies, are financial institutions authorized to make consumer and commercial loans and to accept federally insured deposits. Either financial or commercial firms can own these types of banks. The Federal Reserve does not regulate industrial banks under the Bank Holding Act; instead, the state under which they are charted and the Federal Deposit Insurance Corporation regulates them.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.