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  1. avatar says

    So if one writes about suppliers of materials like,stationery,computers etc for banks instead of suppliers for people altogether when analysing the performance of a bank,all this will be wrong??

  2. Profile photo of gromit says

    Banks operate in a competitive environment, so have rivals. In the UK, HSBC, Lloyds, Barclays, National Westminster, Santander etc. THey compete on the accounts offered and interest rates.

    They have customers. Commercial customers could be powerful buyers; individuals, less so.

    New competitors could enter the market eg a French bank could consider setting up retail banking in the UK. Probably won’t as there are some barriers to entry and competition is already quite intense.

    Suppliers are not suppliers of goods, but suppliers of people. The banking unions have some say on the cost of employment.

    Substitutes might emerge. If I could think of one I might launch it. However, about 20 years ago a bank called First Direct was launched which was entirely internet based (the first one). That provided a substitute to the traditional banking model.

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