Year: 2016 | Month: October | Volume: 3 | Issue: 10 | Pages: 10-20
Baking Regulatory and Market Framework in United Kingdom: Strengths, Weaknesses, Opportunities and Threats
Caesar K. Simpson
Swiss Management Centre University.
In light of the recent financial crisis, which seems to be far from its end, too much has been said regarding the regulation of the financial sectors. This paper therefore discussed the banking regulatory and market framework in the United Kingdom (UK). The paper finds out that until 31 March 2013, the financial services industry in the UK was regulated by the Financial Services Authority (FSA). It was responsible for both conduct and prudential regulation. In 2012, following consultation, the government confirmed its decision to reform financial regulation, in part because in its view the remit of the FSA was so wide before the 2008 crisis that it was not sufficiently focused on financial stability issues.In view of this, the UK financial regulation was overhauled; the UK's banking regulator, FSA, has been abolished and replaced with two successor organisations: Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) with effect from 1 April 2013. Both regulators undertake broadly similar regulatory functions, in pursuit of different objectives. The Bank of England has also gained direct supervision for the whole of the banking system through its powerful Financial Policy Committee (FPC), which can instruct the two new regulators. The FPC is also responsible for macro-prudential regulation.
Key words: Banking regulatory, Market framework, United Kingdom (UK)[PDF Full Text]