Please boost your Plan to download papers
Essay example - UK Deregulated Banking and Economic Downturn
Finance & Accounting
Pages 10 (2510 words)
UK DEREGULATED BANKING AND ECONOMIC DOWNTURN Discussion on the UK’s Overreliance on a Deregulated Banking Industry is a Key Factor in the Current Economic Downturn and Suggestion of Economic Policies Which Could Be Used to Avoid a Double Dip Recession. Name of Student Student Number Department Grade Course 1st December, 2011 Overreliance of UK on a Deregulated Banking Industry is a key factor in the Current Economic Downturn…
Extract of sample
According to Economy Watch (2010), the Banking Industry was once a simple and a reliable business; but, deregulation and technology have transformed the industry considerably. Banking regulation ensures correction of market imperfections and unfair distribution of resources (Central Banks, 2011). Therefore, deregulation of financial institutions saw the domination of the industry by the selected few, and they acted according to their selfish gain. According to Lyons (1999-2011), every aspect of banking is regulated by federal or state agencies. The Thatcherism regime in its quest to deregulate the banking industry generated a chain of imperfection towards failure in the financial sector (Enqdahl, 2009). Deregulation is expected to have considerable effects on the real economy if t significant changes were placed in the structure, and efficiency of the banking industry (Strahan, 2002). Overreliance on a deregulated banking system in the United Kingdom saw the large financial institutions dominate the sector across a wider geographical area. This led to loss of local market concentration as they only pursued entering the market rather than consolidating within a local market. ...
Not exactly what