Question

How and why has the financial service sector, especially depository institutions changed in the last 15 years? What are the benefits and costs of the changes including the impact on structure, performance and conduct of the industry?

Answer 1

Financial services sector which provides financial services to people's and institutions. Services includes a broad range of specific activities such as banking, investing,and insurance.
Depositary institutions recieves fixed and long-term deposits from customers and in return offers good interest. Interest rate is an important factor which have a direct influence over the economy and inflation.
For the past 15 years most of the economies of various countries has been touched it's upper circuit. And the central banks play a major role this and also the proper dealings of depositary institutions which played a vital role. The interest rate from the depositary services gives a good return to the investors and contribute a good portion to the economy too. This performance influences the banking sector of the nation also. Helps to balance the proper interest rate and control the inflation. As the value of the money Increased the interest rate and cost of depositary services also increased which directly increased the growth of economy and standard of living.