Banking System of Great Britain

 

 

 

 

Banking System of Great Britain

 

 

 

 

1979

the law on banking activity

 credit institutions

 

recognized banks           licensed companies                  accepting deposits 

 

 

 

 

The banking system of GB

 

• Level 1:    Central Bank

 

• Level 2:    Commercial Banks

                     Specialized Banks:

- Trading

- Foreigh

- Savings Banks

- Discount Houses

 

 

 

 

 

Central Bank of Great Britain

 

Bank of England

Founded in 1694

1268 shareholders

1200 pounds

Nationalized in 1946

 

 

 

 

The role of the Central Bank

 

• emission of banknotes 
• Influence on the size of cash reserves of banks and money stock
• the adviser of the government concerning monetary and credit policy
• operations on management of official gold and exchange currency reserves
• regulation of an exchange rate of pound sterling

 

 

 

 

Supervision of banking system

 

• Accounts of other banks
• Accounts of the government and the governmental departments
• Management of a public debt

 

 

 

 

Commercial Banks

 

“the great four”:

National Westminster 

Barclays 

RBS 

Lloyds 

 

 

 

 

Passive operations:

 

• reception of deposits:

- deposits at call

- deposit accounts

- savings deposits 

 

 

 

 

Active operations:

 

• dicount loans 
• investments in securities

 

 

 

 

Specialized banks

 

• Trading banks 
• Foreign banks
• Savings banks