UK Banking Sector Reforms - Dissertation Example

The business environment in the modern world has become highly volatile. Different sectors make reformations that aim at responding to these changes in the economic, legal-political, technological and sociocultural environment. The United Kingdoms banking sector has experienced myriad reforms in the memorable past in this regard.Deregulation of the banking sector in the 1970s and 1980s in the United Kingdom enabled banks to take vantage of the lucrative opportunities that came with financial innovation and globalization.

As a result, functionally large and geographically diverse banking groups have emerged in the United Kingdom. The public-policy attention in the United Kingdom has been focused primarily on the costs of the banking sector, which is dominated by complex and large institutions that appear too important to fail. New players and products have emerged in the industry over the last 50 years. Banks in the United Kingdom have continued to become larger and central to the provision of a full range of financial services.

The emergence of highly interconnected universal banks in the banking sector has completely harnessed the economic network and tremendously increased the likelihood of system-wide contagion. The condition has been a characteristic of individual banks distress.