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FINANCIAL DEVELOPMENT IN A COUNTRY OF YOUR CHOICE - Essay Example
Author : nashkuphal
Pages 5 (1255 words)
The question requires a descriptive and critical discussion of the UK financial development. A thorough understanding of the intricacies of the banking and financial system of any country is integral to the effective management of any economy. Infact the world economy is the ultimate beneficiary of the health and wealth of the banking systems of major economies like those of the United Kingdom…
However the modern UK banking and Finance owe their evolution to the Crown's dissolution of the monasteries which acted as money keepers in the 1530s.( Chen 1983:1400).
Today the UK banking system is extremely advanced in terms of the globalization of its financial markets. The constant development and innovation in its financial operations and strategies has changed both its operational and structural financial landscape. Currently it is highly influenced by the Basel Committee (under the Bank of International Settlements) which was formed in response to the crises caused by the insolvency of Bankaus Herstatt and the problems caused by Nixon's announcement of the closure of the Golden Window ,has worked since 1974 to prevent such risks from injuring the health and wealth of such financial institutions.
Of more importance however is the UK's current monetary policy which is aimed at delivering price stability which is a result of low inflation (with the Government's inflation target of 2%. ...