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