The United Kingdom 's Banking Industry Essay

1627 Words Mar 11th, 2016 7 Pages
Coursework 1
The financial sector is a very important part of many economies, particularly the banking sector; which is the section of the economy that holds financial assets. ‘Over the past 40 years the size of the UK banking system has grown dramatically and under plausible assumptions it could continue to grow rapidly.’ The United Kingdom’s banking industry has been very successful and is seen as one of the largest in the world. However, there has been a dip within the financial sector due to the 2008 credit crunch, having a huge effect on the banking sector and their credit conditions. Credit conditions have changed a lot which has been a main affect for the recovery of the UK financial sector from the time of the crisis. The banking industry have increased their amount of concentration since the crisis and UK banks now face much tighter regulation in order to balance the need for financial stability.
The Bank of England’s credit conditions have changed dramatically over the past eight years, caused by the 2008 credit crunch and has lead to many financial difficulties. It was extremely difficult to secure a loan from a bank after the crisis, however it is becoming easier since then. Financial markets are vital in economic terms; enabling funds to move from those with excess cash, savers to those in need of cash, investors or borrowers. This helps to promote economic efficiency. These markets can have an effect upon the wealth of individuals, the behaviour of businesses…

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