Goldsmiths including jeweller acted as the guidance of money or bankers. However,
Gold and silver smith in Lucknow, India 1890
The system of banking in the United Kingdom started in the 17th century. Its established after the dissolutions of English monasteries by Henry VIII. The way of life during monasteries was misery as people were governed by community rules that stipulate the gender of the inhabitants and require them to remain little or no personal property. However, the traditional banking emerged functions of accepting deposits, loans
The emergence of modern banking 18-19 centuries
Good banking & financial system is one of the key economic requirements of a country. In addition, the system is needed to ensure an adequate currency circulation, able to provide efficient service and great cost-effective relationship with investors and debtors.
Bank regulations are designed as a guideline and to create transparency to individual clients and corporation with whom banks conduct businesses. The main policy is monetary whereby associated with interest rates and availability of credit in order to give an opportunity to an individual or company to take cash for personal or as capital for business.
Bank of England was established in 1694 which acquired responsibility to print notes. It was established as a corporation with private shareholders to raise money for war with the King of France Louis XIV. In 1720, the bank became the main financial institution and acted as a banker to the government and private bank. Thus, the idea of monetary policy as independent of executive action began . The UK currency is the pound sterling (£/GBP). There are 100 pence (p) to the pound (£). Notes come in denominations of £5, £10, £20 and £50. Coins come in 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2.
Speak like Londoner
You will usually hear British people say “pee” rather than pence, as in 50p (50 pee). More colloquially, a pound is known as a “quid”, a five pound note is a “fiver” and a ten pound note a “tenner”.
The goal of monetary policy was to maintain the value of the coinage, and prevent coins from leaving circulation. The establishment of central banks by industrializing nations was associated then with the desire to maintain gold standard whereby the standard economic unit of account based on fixed quantity gold.
To accomplish this end, central banks as part of the gold standard began setting the interest rates that they charged, both their own
The gold standard is a system under which the price of the national currency is measured in units of gold bars and is kept constant by the government’s promise to buy or sell gold at a fixed price in terms of the base currency. The gold standard might be regarded as a special case of “fixed exchange rate” policy, or as a special type of commodity price level targeting. Nowadays this type of monetary policy is no longer used.
The objectives of banking and financial regulators are usually for :
- market confidence – to maintain confidence in the financial system
- financial stability – contributing to the protection and enhancement of stability of the financial system
- consumer protection – securing the appropriate degree of protection for consumers.
Important of ISO in banking and finance quality standards
- ISO 9362 defines a standard format of Business Identifier Codes (also known as SWIFT-BIC, BIC, SWIFT ID or SWIFT code) approved by (ISO). It is a unique identification code for both financial and non-financial institutions. The acronym SWIFT stands for the Society for Worldwide Financial Telecommunication. The SWIFT code is used when transferring money between banks, particularly for international transfer, and to exchange messages between banks.
- ISO 10962 defines the structure and format for classification of financial instrument which
is approvedby the ISO. There are many types of Financial Instruments used for saving, investing, trading, hedging and speculating. These instruments are generally organized in groups called “asset classifications.” The most common asset classifications are generally described using terms like “Equities (Stocks),” “Debt (Bonds),” “Derivatives (Contracts),” “Currencies,” and a few other generalized terms. Its provides a global standard for these classifications in the form of specific codes.
- CFI codes also aim to simplify electronic communication between participants, improve understanding of the characteristics of financial instruments for the investors, and allow securities grouping in a consistent manner for reporting and categorization purposes
Credit and Debit Cards
Credit and debit bank cards especially Visa and Mastercard – are widely accepted in the UK either want to use it in restaurants, bars, cafes, and shops. American Express and Diners Club cards are becoming more commonly accepted, although it is still advised to carry an alternative instead of holding cash. Debit card consists of 2 types, saving for personal account and current for business account meanwhile credit card is kind of loan of credit with interest which needs to pay monthly before
Contactless cards are widely used in the UK and many businesses accept them as payment, up to a limit of £30 per transaction.
Uk retail banking brands owned by foreign banks
UK banks, except the Bank of England, are
- Allied Irish Bank (GB) and First Trust Bank, owned by AIB Group of the Republic of Ireland
- Al Rayan Bank, owned by Masraf Al Rayan of Qatar
- Axis Bank UK, owned by Axis Bank of India
- Bank of Ceylon (UK), owned by Bank of Ceylon of Sri Lanka
- Bank of Baroda (UK), owned by Bank of Baroda of India
- Bank of China (UK), owned by Bank of China
- Bank of India (UK), owned by Bank of India
- Bank Sepah International plc, owned by Bank Sepah of Iran
- Zenith Bank (UK), owned by Zenith Bank of Nigeria
- Bank of Ireland UK, owned by Bank of Ireland of the Republic of Ireland; one of the leading banks in Northern Ireland, and present in Great Britain to a lesser extent
- Citibank (UK), owned by Citigroup of the United States
- ICBC (London) plc, by Industrial and Commercial Bank of China
- ICICI Bank (UK), owned by ICICI Bank of India
- Danske Bank (formerly Northern Bank), owned by Danske Bank of Denmark
- Punjab National Bank (International), owned by Punjab National Bank of India
- Santander UK (formerly Abbey, Alliance & Leicester and Bradford & Bingley), owned by Santander Group of Spain
- SEB (UK), owned by Skandinaviska Enskilda Banken, Sweden
- Silicon Valley Bank UK, owned by Silicon Valley Bank of the United States
- State Bank of India (UK), owned by State Bank of India
- Svenska Handelsbanken, UK Branch
- The Bank of East Asia, UK Branch
- TSB Bank, part of Sabadell Group, headquartered in Spain
- Union Bank of India (UK) Ltd, owned by Union Bank of India of India
The UK government’s proposals for the future relationship of the UK with the European Union (EU), stated the UK will not seek mutual recognition of financial services but instead become a “third country”, with a looser arrangement between the economic bloc and the UK also would have “equivalent” rules on financial services to those of the EU, the paper stated.
Kathleen Brooks, research director at Capital Index, said: “The resilience of the UK’s biggest banks is unsurprising since they can well afford to set up multiple offices across Europe, however, the relative disadvantage for the UK’s smallest banks is one reason why Standard Chartered, a smaller investment bank, is a relative under-performer because of its links to emerging markets that are currently at risk from US President Trump’s trade wars.
Meanwhile, HSBC is
- https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money- creation-in-the-modern-economy
- Banks in UK Banks Around the World. Retrieved 20 November 2009.
- Lloyds Banking G4 October 2013. Retrieved 4 October 2013
- Abdel-Monem, Tarik. “What is The Gold Standard?”. University of Iowa Center for The Center for International Finance and Development. Archived from the original on 2009-11-21
- Jahan, Sarwat. “Inflation Targeting: Holding the Line”. International Monetary Funds, Finance & Development. Retrieved 28 December 2014.
- “Monetary Policy”. Federal Reserve Board. January 3, 2006.
- “Monetary and Exchange Rate Policies”. Handbook of Development Economics, Elsevier. 2010.
- Cf. Clarida, R., Galí, J., Gertler, M. (2002). A simple framework for international policy analysis. Journal of Monetary Economics, 49(4), pp. 879–90
- Corsetti, G., Pesenti, P. (2005). International dimensions of optimal monetary policy. Journal of Monetary Economics, 52(2), pp. 281–305
- Cf. Persson, T., Tabellini, G. (1995). Double-edged incentives: Institutions and policy coordination. In G. Grossman and K. Rogoff. Handbook of International Economics, vol. III. Amsterdam: Elsevier
- “Monetary Policy Framework”. Bank of England. Retrieved 19 January 2016.
- “Targeting Inflation: The United Kingdom in Retrospect” (PDF). IMF. Retrieved 31 October 2016.
- “Inflation Targeting Has Been A Successful Monetary Policy Strategy”. National Bureau of Economic Research. Retrieved 31 October 2016.
- Favaretto, F. and Masciandaro, D. (2016). Doves, hawks
andpigeons: Behavioral monetary policy and interest rate inertia. Journal of Financial Stability, 27, pp. 50-58.
- Yellen, J.L. (2007). Implications of Behavioral Economics for Monetary Policy. Federal Reserve Bank of Boston Conference: “Implications of Behavioral Economics for Economic Policy”.
- Simpson, D., Meeks, G., Klumpes, P., & Andrews, P. (2000). Some cost-benefit issues in financial regulation. London: Financial Services Authority.
- UK FSA statutory objectives
- Joanna Benjamin ‘Financial Law’ Oxford University Press