The Main Structural Changes Implementation Of The Uk Financial System

Andrew Bailey (2013) “The future of UK banking - challenges ahead for promoting a stable sector”. Bank of England [online]. Available from:

The UK banking system is an Oligopoly because there are a small number of companies in the industry to allow barriers to be raised against the entry of new firms. ‘It’s important that we have to make sure there’s no banks too big to fail’ (article). Although in an oligopoly its known

banking system similar resembles the interconnected aspects forming in the 19th century US banking system, and ultimately, the same outcome will bring about a panic. Due to the nature of such an interconnected system, when Bank A goes on a run, it caused correspondent banks to pull their money out of Bank A until Bank A can no longer afford to make payments and it fails. This stems a panic as people notice Bank A failed and begin pulling their money out of all the banks at once, fearing their bank is the next one to go bankrupt, causing the money to simply leave the system opposed to move around internally. These consequences force the banks to seek outside money, of which they went to their correspondent banks in London which received funding

Every nation has their own currency and banking system to control and guide their economic health. We will focus on a few systems and analyze them for clarity similarities and differences.

The UK is becoming increasingly reliant on its financial services, demonstrated by the fact that in 2014 the UK’s financial services industry accounted for 8% of the gross value added to the economy. The success of the UK as a global financial centre is largely attributable to the reputation of its cross-border bank lending and the financial institutions in

The Financial Services Act of 2012 in the UK came into force in 2013 on 1st April. This Act has the government reforms on the financial regulatory structure in the UK. The Act gives the new guidelines on the management of the banking sector and other supervisory roles in the financial services sector. This Act bestowed the oversight role to the Bank of England which is therefore expected to be responsible for the occurrences in the financial system and how the financial institutions manage their balance-sheet risks. This Act also stipulates that three more bodies are to be formed to assist in managing this sector. These bodies include the Financial Policy Committee (FPC), Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA). This Act affects significantly the two previous Acts which have been running the sector. These are the Financial Services and Markets Act of 2000 and the Bank of England Act of 1998. In this paper, the Act is clearly analyzed and mostly the effects it has on the Financial Regulatory Regime in the UK (Noked 2013). The economy of the UK has been following a laissez-faire system since 1979 (Allan and Stuart 2011)

The financial system has continuously evolved since the first accord was written. The financial crisis has

The UK Financial Services Act of 2012 was put into effect the 1st of April 2013 and contained the government reforms on the financial regulatory structure in the United Kingdom. This Act gave new guidelines for management of the banking sector and other supervisory roles in the financial services sector, which include the following. The oversight role of the Bank of England was bestowed therefore, it is expected to be responsible for the occurrences in the financial system and how financial institutions manage themselves. Moreover, the Act stipulates that three more bodies are to be formed to assist in managing this sector, these include; the Financial Policy Committee (FPC), Prudential Regulatory Authority (PRA) and

Northern Rock, a bank in the United Kingdom, was one of the institutions negatively impacted early on during the global crisis (MacDonald & Mollenkamp, 2008; Shin, 2009). Although its failure was among the first signs of the global crisis in the United Kingdom, regulatory barriers were not in place early enough to stymie the resulting financial turmoil, and financial reform resulted (Enrich & Norman, 2010). The purpose of this essay is to outline the particulars of the Northern Rock debacle and then to review the reform of the Financial Services Authority, the main financial oversight entity in the United Kingdom during the period of the crisis.

The main concept of the article is to explain why the New International Financial Architecture (NIFA) was created and who is being benefited from this approach. The discussion begins with an examination of the power structures of the global political economy by focusing on the continued dominance of the USA. The article presents the contradictory relations between USA and global finance will be explored so as to shed more critical light on the NIFA. This article critically examines the NIFA by linking its institutional components to the larger contradictions of the capitalist inter-state system. A contradiction is the constant promotion of financial liberalization in emerging

The first era of unrestricted financial globalization took place in late 1860s. During this time, it is argued that London played the role of the heartbeat of all of financial undertaking. This time frame is classified as the early stage of development of global financial and markets (Eichengreen & Bordo 202). That time frame was characterized by a sequence of banking challenges as a result of poor financial management, speculation; unrestricted borrowing poorly controlled banking systems and non-disclosure of financial data in the banking industry. Interestingly, Keynes (171) views the financial the first era financial crisis under the perception as London having the ability to serve the whole world in terms of financial assets only through a phone a call.

This paper proposes a functional approach to designing and managing the financial systems of countries, regions, firms, households, and other entities.

The Financial System Inquiry (FSI) acts as a model for achieving a resilient and efficient financial system, contributing to Australia’s economic growth. The Capital requirements implemented according to the FSI has potential impacts on Australian banking system:

The United Kingdom, in particularly London, is one of the epicenter of the world 's financial market. It has one of the world 's busiest derivative market and foreign exchange market. The London Stock Exchange exerts a tremendous amount of influence on the world 's stock exchange, with a total market capitalization of as of 6.06 trillion pounds as of December 2014. Overall, the service sector, including the financial services sector, contributed 77.8% of the British GDP in the first quarter of 2014.. The recent performance of the financial sector of the UK managed to beat estimates is a clear evidence of its status as one of the leading financial command centers in the world. The London Interbank Offered Rate, also known as LIBOR, is widely used as the key short-term interest rate worldwide.

Singapore Financial System is one of the world’s largest financial systems. According to Mishkin (2009), Financial System refers to a system that consists of the markets and institutional units that interact for the purpose to provide facilities such as payment and transfer systems and organizing the funds for investment from saved surplus funds to units who have shortage