Banks & Finance

Value Chain (2006)

Banks & Finance Value Chain 2006

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The banking and finance value chain is unique because it is based entirely around the production of services. In this industry, the "raw materials" are lenders and borrowers (individuals and corporations) that appear at both the beginning and the end of the chain. The products provided by this industry are divided between credit intermediaries (both depository and non-depository) and financial intermediaries. North Carolina is strongest in depository credit intermediaries, more specifically commercial banks. These institutions primarily collect funds through deposits and lend funds by issuing loans, but, the fine line between the functions of commercial banks and investment banks is continually becoming thinner, and in many cases, commercial banks also conduct investment banking. Moreover, the banking transaction does not represent the end of the relationship between the lender and the borrower. Banking services generally entail the establishment of a relationship between the two and as a result, firms perform a variety of activities before and after the sale of a product.