The UK banking system differs from other European systems in that it has a significant presence of foreign banks and is more oriented toward foreign currency activities. Foreign currency business is at least as important as sterling activity on banking sector balance sheets. The largest banks in the UK are HSBC, Barclays, Royal Bank of Scotland, and Lloyds Banking Group. Banks have increasingly relied on non-interest income like fees as a source of total income in recent years. Relatively high margins, lower costs, and strong economic conditions led to increased bank profitability in the UK from 1992 to 1999.
8. FINANCAL STRUCTURE OF THE UK
BANKING SYSTEM
• THE BALANCE SHEET STRUCTURE OF THE
UK BANKING SYSTEM DIFFERS FROM THAT
OF MANY OTHER EUROPEAN SYSTEMS
• SIGNIFICANT PRESENCE OF FOREIGN
BANKS
• FOREIGN CURRENCY ORIENTED
9. IN FIGURE 2 IT SHOWS THAT FOREIGN CURRENCY BUSINESS IS AT
LEAST AS IMPORTANT AS STERLING ACTIVITY IN THE BANKING
SECTOR’S BALANCE SHEET
10. IN FIGURE 3 IT SHOWS THE IMPORTANCE OF FOREIGN CURRENCY DEPOSITS IN THE UK
SYSTEM.
11.
12. The largest banking and financial services organizations in the world with
offices in 88 countries.
THE BANK SERVES OVER 95 MİLLİON
CUSTOMERS WORDWİDE.
13. Big four bank in the world;
Assets
Rank Bank Country ($b Date
)
German
1 Deutsche Bank 2,802.71 31/12/2011
y
Mitsubishi UFJ
2 Japan 2,741.52 31/12/2011
Financial Group
3 HSBC Holdings UK 2,555.58 31/12/2011
4 BNP Paribas France 2,545.34 31/12/2011
14. The report; in competition protect to
CRUİCKSHANK REPORT WAS consumer especially individual and
PUBLİSHED İN 2000. SMEs.
report was published in 2002.independent public body which conducts in-depth inquiries
into mergers, markets and the regulation of the major regulated industries, ensuring
healthy competition between companies in the UK for the benefit of companies,
customers and the economy
15. Total assets
Bank Date
Rank ($b)
1 HSBC Holdings 2,454.69 31.12.2010
2 Barclays 2,325.72 31.12.2010
3 Royal Bank of Scotland Group 2,267.93 31.12.2010
4 Lloyds Banking Group 1,549.45 31.12.2010
National Westminster Bank
5 572.250 31.12.2010
(NatWest) (1)
6 Standard Chartered Group 516.542 31.12.2010
7 Santander UK (2) 472.842 31.12.2010
8 Standard Life 240.615 31.12.2010
9 Co-operative Financial (CFS) 108.306 31.12.2010
10 Investec 72.711 31.03.2010
11 Clydesdale and Yorkshire Bank (3) 69.476 30.09.2010
12 Northern Rock plc 29.039 31.12.2010
19. Relatively high margin,lower cost
and buoyant economic conditions
have resulted in an increase in loan
demand;this has fed through into a
sustained increase in the profitability
of UK banks from 1992 to 1999.
20.
21.
22.
23.
24.
25.
26.
27.
28. FRANCE Prior to the 1986 ’BİG BANG’
NORTH Reforms,mainly partnerships
AMERİCA Operating in the City.
GERMANY
Independent UK firms such as Morgan Kleinwort
Grenfell Benson SG Warburg
The merger and arquisition frenzy Deutsche Bank
Faltered,to a certain extend after Arquired Morgan
The 1987stock market crash. Grenfell in 1989