National Westminster Bank

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NatWest Bank

Corporate Strategy STE03-3

99077711

A report on NatWest Bank and an analysis of the banking industry.

April 2004


Contents

1. INTRODUCTION        3

Company History?         3

What will the report tell us?         

2. EVALUATION        

Industry Analysis        4

Company Analysis        5

Likely Consequences        6

Alternative Solutions        

Findings        

3. CONCLUSION        7

4. RECCOMENDATIONS        8

5. BIBLIOGRAPHY        9

APPENDICES        10


1. Introduction

This report focuses on NatWest and the industry in which it operates. The purpose of the report is to give a concise but accurate view of how NatWest operates as an organisation and the links between its environment, in this case the banking industry.

Company History  

National Westminster Bank came into being in 1968 when National Provincial Bank and Westminster Bank merged and began trading on 1st January 1970. This allowed the bank to expand and venture into new services such as credit cards and computer-linked cash dispensers. The 1980’s saw deregulation of the financial markets which eventually culminated in the ‘Big Bang’ in 1986, National Westminster Bank seized this opportunity and entered the securities business acquiring stockbroking and jobbing firms to create NatWest Investment Bank. The Group’s International Banking Division focused on expanding into international banking services and into The USA, the Far East and Europe.

In the 1980’s new services were introduced as technology advanced such as telephone banking and the Switch debit card which extended the use of the electronic transfer of money to the point of sale. The Organisation also moved into more markets with inception of National Westminster Home Loans and the Small Business Unit in 1980 and 1982 respectively. However the recession and changing financial services environment of the 1990’s forced the bank to withdraw from many markets and refocus its activities, adopting the name NatWest.

The apparent limitations with which the bank found itself as a result of the restructuring in the 1990’s made it the ideal acquisition for the Royal Bank of Scotland as a subsidiary in 2000. The £21 billion deal is the largest take-over in the history of British Banking. NatWest is now part of the second largest financial services group in the UK and Europe and the fifth largest in the world by market capitalisation. 

What will the report tell us?

 The report will identify and evaluate the significant problems and issues which NatWest is facing and the banking industry as a whole. Once these issues are identified it will then be possible to identify any potential consequences which NatWest is likely to face if they are not addressed, the use of relevant analytical tools will make this possible. The report will then suggest and analyse alternative solutions to potential problems by weighing up the advantages and disadvantages of any proposed solutions.

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The findings of the analysis will be critically evaluated in order to achieve the main aim of the report in the conclusion from which suitable recommendations will be made. These recommendations will acknowledge all the problems identified in the analysis and evaluation and advice how they may be dealt with.    


2. Evaluation

Industry Analysis

The British banking industry has come under extreme scrutiny over recent years and it is likely to continue during the foreseeable future. The perceived anti-competitive nature is as a result of a century of mergers and take-overs like the ones that ...

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