Analyze the individual banks first or the banking system as a whole?

The analyst confronts something akin to the chicken-and-egg problem. Since individual banks must be viewed in context, the banking system requires early attention. But the system or sector as a whole cannot be fully understood without knowledge about the problems and prospects of specific banks. In practice, gaining that understanding is an interative process. The analyst might begin with research into the structure of the system as a whole for background purposes. This might be followeed by a review of the major commercial banks. Then the analyst may return to a more "macro" perspective, preparing an analysis of the entire sector.