The UK Banking System and its Regulatory and Supervisory Framework (Palgrave Macmillan Studies in Banking and Financial Institutions)

Cover......Page 1
Contents......Page 8
List of Tables and Figures......Page 10
Preface......Page 12
Acknowledgements......Page 18
List of Acronyms......Page 19
Part I: Banking and Financial Markets......Page 22
1 The Structure of the Banking System Between the 1960s and the 1980s......Page 24
1.1 A fragmented banking system......Page 25
1.2 The 1970s: more competition, secondary banks' crisis, the Banking Act 1979......Page 32
1.3 The 1980s: further into statutory bank supervision: the Banking Act 1987......Page 34
1.4 The capital markets: the Big Bang, the Financial Services Act 1986......Page 36
2 The UK's Financial Structure and Economic Sectors......Page 40
2.1 The economy's financial deepening and its implications......Page 41
2.2 The evolution of households' balance sheets......Page 47
2.3 The financial structure of the non-financial corporate sector......Page 54
2.4 The role of the financial sector in external balance......Page 60
3.1 The problem in an historical context......Page 69
3.2 The revision of the pension system......Page 74
4 The Configuration of the Banking System in the last 15 Years......Page 78
4.1 The banking system: structure, conduct, performance......Page 79
4.2 Steps to strengthen competition in the domestic market......Page 84
4.3 The foreign banks and the role of the City......Page 89
4.4 Fund management and the hedge funds......Page 93
4.5 Private equity......Page 96
5 The Stability of the British Banking Sector......Page 101
5.1 A long-run perspective......Page 102
5.2 Banking crisis in the 1990s......Page 105
5.3 Monitoring financial stability and stress testing......Page 108
6 Markets and Market Infrastructures: Institutional and Prudential Aspects......Page 118
6.1 Stock exchanges and the OTC derivatives market......Page 119
6.2 Recent developments in wholesale banking markets......Page 126
6.3 The market for credit risk transfer......Page 128
6.4 The payment system and the role of settlement banks......Page 134
6.5 The sterling money market and liquidity management......Page 136
7 The Sub-prime Mortgage Market Crisis and Its Effects on the UK Banking Sector......Page 141
Part II: The Legal and Regulatory Framework......Page 152
8 The New Regulatory Framework: The Financial Services Authority......Page 154
8.1 An overview......Page 155
8.2 Different supervisory systems......Page 158
8.3 Financial reform (1997–2001): the FSA and the FSMA......Page 164
8.4 Objectives, principles and responsibilities of the FSA......Page 167
8.5 Scope of the FSA's power and the nature of its legislative function......Page 173
8.6 The FSA's supervisory style......Page 175
8.7 Crisis management tools: institutional aspects......Page 179
8.8 Retail banking: the residual role of self-regulation, the Consumer Credit Act and the Financial Ombudsman Service......Page 183
9 The Combined Code of Corporate Governance......Page 186
10.1 The regime proceeding the reform......Page 191
10.2 The Competition Act 1998 and the Enterprise Act 2002......Page 195
11 Conclusions......Page 200
Notes......Page 205
References......Page 230
B......Page 240
D......Page 241
I......Page 242
N......Page 243
W......Page 244