General introduction of the whole economic condition during 2007 to 2010, the relationship between bank industry and financial crisis and the influence on bank industry.

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General introduction of the whole economic condition during 2007 to 2010, the relationship between bank industry and financial crisis and the influence on bank industry.

Since late 2006, with the increasing house bubble in the United States, the whole financial system in U.S began to pay for its crazy innovation in the past few years. In 2007, the financial crisis or called subprime crisis started eventually. Bank industry was heavily influenced in the crisis. No single bank could stay alone. Many banks went bankruptcy because of insolvent. However, some big banks survived from the crisis and expanded themselves by acquiring other banks which were in trouble.

We will simply review how bank industry dealed with the financial crisis and what was the relation between the crisis and bank industry. From 2007 to 2010, the fact that foreign banks had a 1.83% market share in China Market from 2.38% may have something to do with the liquidity need and capital requirement problems. On the other hand, they may expect the future economic development of China will slow down. From the performance of different banks, we can see nowadays bank management and regulation is gradually a global topic. No finance system or bank can separate from their counterparties.

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Tranditionally, commercial banks and investment banks have different jobs in bank business. They aim at different customer group and take profit from respective service. However, since year 2000 till the whole breaking of subprime crisis, we saw this two kinds banks, together with rating agencies built financial "dreams" in the United States.

Deregulation paved the main road for both innovation and unstability of the financial system in the United States. Then banks took part in the sells and creation of various complicated financial products. There was less restriction after 《Financial Services Modernization Act》of 1999 which could be ...

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