The UK Banking System and its Regulatory and Supervisory Framework

Carlo Gola (1984, Economics)

The banking industry has witnessed a fundamental technological breakthrough, with the new paradigm based on the 'originate-to-distribute' model. These developments posed new challenges for both regulators and market players. Describing the evolution of the UK banking industry, including the effects of the sub-prime mortgage market crisis and the collapse of the Northern Rock, the book offers a convenient background for non-specialist readers to recent developments, such as the over-the-counter (OTC) derivative market and the credit risk transfer (CRT). It provides an introduction to a wide range of topics from a macro-prudential perspective, including the financial sustainability of the households and corporate balance sheets and the use of market-based indicators and stress testing. A basic description of the payment system and central banking liquidity facilities is also included. The second part of the book provides a comprehensive view of the UK regulatory structure, covering topics such as the declining role of self-regulation, the Financial Services and Markets Act (2000), the Combined Code of corporate governance, the Competition Act and related regulation. A rich set of notes and tables supports the book with useful definitions, references to official sources and data on the UK economy.  The book is available to purchase at  www.palgrave.com