Greater Baltimore has a long history in financial services and investment banking, and today is a leader in asset management. In recent years, the financial services industry in the United States has looked more aggressively at decentralization options, and the Baltimore region offers a strong value proposition to those firms looking for a center to house high end back office operations. Due to the region's diverse investment community, Greater Baltimore has a deep base of professionals. Furthermore, its ideally suited location allows for greater ease of access to other cities on the East Coast.
NAICS Definition of the Finance and Insurance Industry
The Finance and Insurance sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. Three principal types of activities are identified:
1. Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities. Establishments engaged in this activity use raised funds to acquire financial assets by making loans and/or purchasing securities. Putting themselves at risk, they channel funds from lenders to borrowers and transform or repackage the funds with respect to maturity, scale, and risk. This activity is known as financial intermediation.
2. Pooling of risk by underwriting insurance and annuities. Establishments engaged in this activity collect fees, insurance premiums, or annuity considerations; build up reserves; invest those reserves; and make contractual payments. Fees are based on the expected incidence of the insured risk and the expected return on investment.
3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs.
In addition, monetary authorities charged with monetary control are included in this sector.
Subsectors Industries
· Monetary Authorities – Central Bank
· Credit Intermediation and Related Activities
· Securities, Commodity Contracts, and Other Financial Investments and Related Activities
· Insurance Carriers and Related Activities
· Funds, Trusts, and Other Financial Vehicles