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
IN FIGURE 2 IT SHOWS THAT FOREIGN CURRENCY BUSINESS IS AT LEAST AS IMPORTANT AS STERLING ACTIVITY IN THE BANKING SECTOR’S BALANCE SHEET
The largest banking and financial services organizations in the world with offices in 88 countries.
THE BANK SERVES OVER 95 MİLLİON CUSTOMERS WORDWİDE.
Big four bank in the world;
Rank BankCountr
y
Assets ($b)
Date
1 Deutsche BankGerman
y2,802.71 31/12/2011
2Mitsubishi UFJ
Financial GroupJapan 2,741.52 31/12/2011
3 HSBC Holdings UK 2,555.58 31/12/2011
4 BNP Paribas France 2,545.34 31/12/2011
CRUİCKSHANK REPORT WAS PUBLİSHED İN 2000.
The report; in competition protect to consumer especially individual and SMEs.
report was published in 2002.independent public body which conducts in-depth inquiries into mergers, markets and the regulation of the major regulated industries, ensuring healthy competition between companies in the UK for the benefit of companies, customers and the economy
RankBank
Total assets ($b)
Date
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
5National Westminster Bank (NatWest) (1) 572.250 31.12.2010
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
Financial year
ending
2004 2005 2006 2007 2008 2009
İnterest income
85.2 100.5 116.8 147.0 172.3 107.2
İnterest expense
50.8 62.9 76.8 104.4 117.6 56.7
Net in.income
34.4 37.7 40.0 42.5 54.7 50.5
Non-int.incom
e(net)
45.7 51.7 56.9 49.9 30.1 62.9
Gross income
80.1 89.4 96.9 92.4 84.8 113.4
Operating
expenses
50.9 54.6 56.2 49.9 92.8 64.9
Net income
29.2 34.8 40.6 42.5 -7.9 48.4
Provisions(net)
5.3 7.4 8.9 10.9 33.7 40.2
Profit before tax
24.0 27.4 31.7 31.7 -41.7 8.3
tax 6.6 7.9 9.2 7.2 -4.2 0.0
Profit after tax
17.3 19.5 22.5 24.5 -37.5 8.3
Staff cost(include above)
20.3 22.6 25.5 27.1 29.7 30.0
İncome –costs=profits
MBBG İNCOME STATEMENT
Relatively high margin,lower costand buoyant economic conditions
have resulted in an increase in loandemand;this has fed through into a
sustained increase in the profitabilityof UK banks from 1992 to 1999.
FRANCE Prior to the 1986 ’BİG BANG’Reforms,mainly partnerships
Operating in the City.
GERMANY
NORTHAMERİCA
Independent UK firms such as MorganGrenfell
KleinwortBenson SG Warburg
The merger and arquisition frenzyFaltered,to a certain extend after
The 1987stock market crash.
Deutsche BankArquired MorganGrenfell in 1989
• References:• https://docs.google.com/viewer?a=v&q=cache:JUntByehHDQJ:www.econ-pol.unisi.it/tonveronachi/Seminari/Molyneux_Banking%2520Cri
sis%2520in%2520UK%2520and%2520Europe.pdf+%C4%B1ncome+of+major+british+banking+groups&hl=tr&gl=tr&pid=bl&srcid=ADGEESjts6FS5ye-tGqftnGDN8qS_oQ1HekTJemFeh6VgDs9nHq7ExPOPGPFI8pqgkKDOxBBTz_U0vjTNsBTn-tAVvCyjbP0deYWPx98757ljKzE2yGTJIklyki8o7PjbrQOMAY_a4cF&sig=AHIEtbRy6dLPxDlYD5FfBQEMXYJsBbxgCw
• www.apca.com.au/AR2009• Payment statistic• Peymant systems oversight Report2011• İntroduction to Banking• http://www.econ-pol.unisi.it/tonveronachi/Seminari/Molyneux_Banking%20Crisis%20in%20UK%20and%20Europe.pdf • http://www.ukessays.com/essays/business-finance/structure-and-functioning-of-the-british-baking-industry.php
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