The Main Structural Changes Implementation Of The Uk Financial System

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It has been argued that the financial markets in the UK have failed to provide adequate support for industry. Identify the main structural changes implemented in the UK financial system over the last two decades and explain how these changes have affected the supply of funds in the industry. The financial system is defined by Investopedia as the system that enables lenders and borrowers to exchange funds. The global financial system is basically a broader regional system that encompasses all financial institutions, borrowers and lenders within the global economy. This describes any marketplace where buyers and sellers participate in the trade of assets such as, equities, bonds, currencies and derivatives. The financial system can be broken down into components which make up different levels, this includes; banks and other financial institutions, financial markets and financial services. In a global system this would include the IMF, central banks, World Bank and major banks that practice overseas lending. In the UK financial system has grown rapidly over the recent decades, it is large in comparison to other advanced economies, such as the U.S, France and Japan; however it is comparable with Switzerland who also has a historic specialisation in financial services. The largest part of the UK financial system is its banking system. The growth began before the financial crisis that started in 2007, where the global economy enjoyed a long period of sustained economic growth
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