Chapter 11, Problem 7Q

To determine

Whether the invention of the computer is the major factor behind the decline of the banking industry. Is this statement true, false, or uncertain?

Concept Introduction:

The role of traditional banking as a lender had reduced since 1974 where their market share of loans reduced to 40% and it further reduced to 30% in 2002. There has also been a drastic fall in the share of total financial intermediary assets. There was a clear decline in the banking industry where its basic role as a financial intermediary to provide loans funded by deposits had gone for a toss.