Uk Banking System

1082 WordsApr 15, 20115 Pages
UK Banking System - Banking and Finance A Summary Sophisticated commercial, financial and professional services developed in the City of London during the 19th century to support Britain 's position as the world 's largest trading nation. Today Britain has a wide variety of banking and financial institutions. Many of these offer specialised services to individuals, companies and other bodies, both in Britain and internationally. Bank of England The Bank of England was established in 1694 by Act of Parliament and Royal Charter as a commercial bank with private shareholders. It was brought into public ownership when its entire capital stock was acquired by the Government in 1946, although by then it had for many years behaved as a…show more content…
National Savings National Savings is a source of finance for government borrowing and aims to encourage saving by offering personal savers a range of investments. Some of these offer tax-free returns. Products include fixed-interest and index-linked Savings Certificates; Income and Capital Bonds; Pensioners Bonds; Premium Bonds; and Ordinary and investment Accounts, where deposits and withdrawals can be made at nearly 20,000 post offices throughout Britain. Over £61,600 million was invested in National Savings in September 1996. The services are run by National Savings, a government executive agency. Friendly Societies Friendly societies have traditionally been unincorporated societies of individuals, offering their members a limited range of financial services, particularly provision for retirement and against loss of income through sickness or unemployment. The Friendly Societies Act 1992 enabled them to offer a broader range of financial services through subsidiaries. Over 120 friendly societies are authorised to accept new business. Investing Institutions The investing institutions attract savings from the personal sector and invest them in securities and other assets. The main investment institutions are insurance companies, together with insurance broking firms, pension funds, unit tru sts and investment trusts. Some of these are
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