Journal Article

Finance companies, bank competition, and niche markets


Abstract: During the 1980s, U.S. commercial banks faced increased competition in their lending activity from large finance companies. This article analyzes the differential performance of banks and finance companies in various segments of the consumer and business credit markets. In particular, it explores why banks were seemingly slow to take advantage of opportunities in fast-growing finance company niche markets.

Keywords: Financial institutions; Financial services industry; Bank competition;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Quarterly Review

Publication Date: 1992

Volume: 17

Issue: Sum

Pages: 25-38