FINANCE

UK Financial and Banking Regulatory Regime

Table of Contents

Introduction2

Discussion3

UK's National Regulatory Models Challenged3

Increase in Leverage5

Financial Market Innovations6

Developments within United Kingdom6

Reforms Assessment proposed by Coalition Government7

Return to the Standard Guided by Three Principles8

Conclusion11

United Kingdom's Financial and Banking Regulatory Regime

Introduction

The study is related United Kingdom's financial and banking regulatory regime which aims asses the reforms proposed by the coalition government. With reference to this, it is important to note that mankind has unlimited requirements, wishes, wants and demands and in order to fulfil the demands mankind work hard and put all efforts to achieve the objectives. The civilization has reached to an age where every nation has a structure for government and for economy. The government structure has a massive influence on the shape and size of economy. The economies of world has expanded to a very high extend. The report will identify the issues in financial and banking sector which caused problems for the UK. The report will focus on the reforms that the coalition government has proposed to fix the issues. There are many advantages of exchanging goods however there is also a dark side of exchanging goods. The citizens of the state which are working in other countries used to send back the money to their home courtiers which again help the economy of home country to climb up. On the other hand, the home country should not rely on the expatriates' income because these individual are sending money due to their own will. It is not possible for the home country to compel its expatriates to keep sending the money. The discussion of this paper will evolve around two main points which are evaluation of the current United Kingdom's financial and banking regulatory regime and detailed assessment of the reform proposals drafted by the UK's coalition government.

Discussion

UK's National Regulatory Models Challenged

Dissemination and responsibilities concentration: two approaches failed

With reference to United Kingdom's financial and banking regulatory regime, the quality of the supervision of financial activities has consistently been questioned, especially since the second half of this decade was marked by a rather relieving pressure on regulatory activities and market will not curb the creative impulse. Moreover, the coalition government challenged the two configurations of the supervisory architecture:

Sectoral approach and segmented United Kingdom, not less than six Federal authorities are indeed in charge of banking supervision, and the insurance industry is essentially states. The proliferation of authorities has facilitated the emergence of interstices of non-regulation, particularly in the areas of mortgage lending, securitization and hedge funds;

The unified and very focused on the competitiveness of the UK: the Financial Services Authority (FSA), sole authority to regulate the financial sector has been particularly criticized for his handling of the collapse of Northern Rock in September 2007.

The new Conservative government that is coalition government has announced its intention to revise the institutional architecture established by the tripartite memorandum signed in October 1997 between the FSA, the Bank of England and the Treasury. The FSA would transfer most of its functions to a new Financial Policy ...