Substantially revised and updated, this fourth edition of The UK financial system presents a comprehensive explanation of the workings of the institutions and markets which make up the UK financial system, and discusses the issues affecting them. It presents key theoretical developments such as asymmetric information, the efficient markets hypothesis, behavioural economics and the term structure of interest rates, thus providing an analytical framework to aid understanding of the institutional structure.
Several case studies are provided throughout the book looking at the failure of various financial firms and the lessons that can be learned from these. Examples include Equitable Life, Barings Bank, the Bank of International Credit and Commerce (BCCI) and Long Term Capital Management.
1. Introduction to the Financial System
2. Financial intermediation and recent developments in the UK system
3. Retail banking
4. Wholesale and international banking
5. Building societies and financial houses
6. Investment institutions
7. Financial markets: introduction
8. The market for equities
9. Interest rates and the bond market
10. The sterling money markets
11. The foreign exchange market
12. Eurosecurities markets
13. Financial derivative
14. Managing risk via financial markets
15. The efficiency of the UK financial system
16. Central banking
17. Regulation of the financial system
18. Conclusions
