Here's Why Global Banking Empires Are Shrinking

The video discusses how major global banks like Citigroup and HSBC have scaled down their operations to focus on high net worth individuals and institutional investors. Citigroup has reduced its global retail presence significantly since the financial crisis, while HSBC has shifted its profit focus from retail to corporate and investment banking. This trend is also evident in the US, where banks are closing branches in less profitable areas to concentrate on major cities.

What was the primary reason for Citigroup's reduction in global retail operations?

• To increase its presence in more countries

• To expand its workforce

• To focus on high net worth individuals

• To recover from financial crisis losses

By 2008, how many countries did HSBC have retail operations in before cutting down?

• 60 countries

• 120 countries

• 30 countries

• 90 countries

What percentage of HSBC's profits came from corporate and investment banking in 2006?

• 75%

• 53%

• 90%

• 25%

What was the impact of Citigroup's consolidation in the US?

• Focus on rural areas

• Expansion into new markets

• Concentration on major cities

• Increased number of branches

What strategic focus has become more profitable for global banks like HSBC?

• Increasing the number of branches

• Expanding retail operations globally

• Focusing on high net worth individuals and institutional investors

• Offering all services to all customers