Value Chains
The Banking Value Chain
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.
Map - North Carolina's Banking & Finance Companies, 2007
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Many of the largest corporations active in North Carolina are not only important to North Carolina, but are critical to the national industry. As such, it is likely that these companies are immersed in one or more of these activities for the national banking industry, and not only for the state banking industry. This is a key difference between the banking industry in North Carolina and those of smaller states in this industry. The sheer number of national banks with large facilities in North Carolina indicates that North Carolina acts as a financial hub for the national banking activity. As mentioned in the Overview, of the 50 banks that operate both in North Carolina and in other states, 24 are headquartered in North Carolina. While this does not capture all banks that operate across state lines, this does indicate that North Carolina possesses a commanding presence at the regional level. Many of these banks, including Wachovia, Bank of America, BB&T, and First Bank Charter, began as North Carolina banks before spreading to other states.
