Banking System of the United Kingdom

1.Banking System of the United Kingdom.

Banking system of the United Kingdom.

2. Banking in the UK can be considered to have started in the Kingdom of England in the 17th century.

Three c characteristics: well developed banking infrastructure,  a close relationship with the international market for loan capital, a high degree of concentration and specialization.

3. The UK has a two-tier banking system with the central bank at the top and other banks on the ground level: Commercial (depository) banks, Foreign banks, Discount houses, Bank of England, Trade banks, Saving banks, Specialize banks.

4. Different aspects of the banking system: Central bank, Business Banking, High Street Banks, Investment Banking. The Governor and Company of the Bank of England is the official name of the Bank of England.

 

5. The Governor and Company of the Bank of England is the official name of the Bank of England: The Bank of England was established in 1694. It is the 2nd oldest central bank in the world and the world's 8th oldest bank. The Bank of England was nationalized in 1946.

6. The Bank of England functions: 1.The Bank is one of 8 banks authorized to issue banknotes in the United Kingdom. 2.The Bank is responsible for the regulation and supervision of the banking and insurance industries.3. Monetary stability Stable prices and  confidence in the Currency . 4.Financial stability Maintaining financial stability involves protecting against threats to the whole financial system.

7. The main retail banks provide over 125mln accounts, clear 7bn transactions a year and facilitate 2.3bn cash withdrawals a year from its network of over 30,000 free ATMs: 309 British banks, 355 foreign banks’ branches and affiliates from 80 countries of the world, employ 0.5 mln people, provide banking services to 95% of the UK’s population, contribute £70bn to the UK’s  national output (6.8% of GDP), provide 25% of total corporation tax (£8bn) to the UK Government, £560bn ($1 trillion) foreign exchange a day.

8. "Big four banks" is in the UK is currently represented by four largest UK-based banking groups:1. HSBC Holdings.2. Barclays.3. The RBS Group, The Royal Bank of Scotland Group.4. Lloyds Banking Group .

9. 80% of the total UK banks assets.    ¹ Global Finance annual listing of the World’s 50 Biggest Banks for 2012, as measured by total assets.

10. Does the UK Government own: 84% of the Royal Bank of Scotland Group shares;

43% of Lloyds Banking group shares.

 

Questions

 

1. What are the main 3 characteristics of the banking system of the United Kingdom?
2. The UK has a two-tier banking system with the central bank at the top and other banks on the ground level, hasn’t it?
3. What types of banks does the banking system of the United Kingdom include?
4. Was the Bank of English established in 1694 or 1946?
5. 5.It is interesting to know if the Bank of England is the only bank authorized to issue banknotes in the United Kingdom.
6. How does the Bank of England maintain monetary and financial stability in the country?
7. How many billion pounds do British banks contribute to the national output?
8. What are four largest UK-based banking groups?
9. I wonder what the peculiarities of the UK banking system and tendencies of its development are.
10. Does the UK Government own 84% of the Royal Bank of Scotland Group shares and 43% of Lloyds Banking group shares?