UK banking system

Banking statistics of Great Britain divides all financial institutions into two groups: the actual banking and nonbank financial institutions. Financial institutions are UK Banking Sector Commercial Banks (including clearing banks) Accounts House Merchant banks and foreign banks have syndicated non-bank financial institutions are Building Societies Insurance Companies Investment Companies Pension Funds Credit unions consider the UK banking system. In the current economic climate in which many developing country in the world, the debate about the role and functions of central banks, which began almost from the moment of their appearance, received an additional boost. The effectiveness of monetary policy being implemented by the central bank, many banking experts attributed to his powers and a measure of independence from government. Let us dwell on the heart of the British banking system - the Bank of England. Numerous functions that the Bank of England can be divided into two groups: - Group 1 - direct trade obligations arising from bank status (deposit and lending, clearing and issuing operations) - Group 2 - control functions, through which the state intervenes in the work monetary system, trying to influence the course of economic processes. There are many functions, but they all focused on achieving three main objectives. These include: 1) support the national currency value, mainly through transactions in the market agreed with the Government, in other words, the implementation of monetary policy, 2) the stability of the financial system as a direct control over banks and financial market participants to the City, and by ensure stable and efficient payment system, and 3) ensuring and improving the efficiency and competitiveness of the financial system in the country and strengthening the position of the City of London as a leading international financial center. Like any other bank, Bank of England provides its clients with a range of services. Topic: Banking systems | Tags: banking system