Risk Regulation and Compliance of Uk Banking
Content
I Introduction 3
II Findings 4 2.1 An overview of the UK Financial Regulatory Environment 4 2.1.1 The HM Treasury 4 2.1.2 The Bank of England 4 2.1.3 Financial Service Authority 4 2.1.4 The changes of Financial Services Authority 5 2.1.5 Supervision structures of EU 5 2.2 Date description 6 2.2.1 Total equity-to-asset ratio 6 2.2.2 Tier 1 capital ratio 7 2.2.3 Total loans-to-deposits ratio 8 2.2.4 Cash ratio 9 2.2.5 The ratio of cash balances at the central bank to total deposits 10 2.3 Correlation analysis 10 2.3.1 Total equity-to-asset ratio 11 2.3.2 Tier 1 capital ratio 11 2.3.3 Total loans-to-deposits ratio 11 2.3.4 Cash ratio 12 2.3.5 The ratio of cash balances at the central bank to total deposits 12 2.4 OLS Regression analysis 12 2.4.1 Total equity-to-asset ratio 12 2.4.2 Tier 1 capital ratio 13 2.4.3 Total loans-to-deposits ratio 13 2.4.4 Cash ratio 14 2.4.5 The ratio of cash balances at the central bank to total deposits 14 2.5 Regulatory concerns 15
III Concluding remarks with policy recommendations 17
Reference 19
Appendix 21
I Introduction
This report is aimed to explore the relationship between the performance of Barclays Bank and the risk regulation. By underlying trend analysis, correlation analysis, and regression analysis on five important ratios which could represent the performance of Barclays Bank, the report will show if there is any statistical evidence to confirm the hypothesis that a high compliance with regulation is essential for a stable banking system. This report also will provide an overview of the UK banking Regulation and Supervisory Practice and identify the concerns of Barclays Bank. The objective is to provide some useful recommendations for its management with the requirements of the regulatory.
II Findings
2.1 An overview of the UK Financial Regulatory Environment
Banking regulation is designed for the central goal of financial stability. In the UK, HM
I Introduction 3
II Findings 4 2.1 An overview of the UK Financial Regulatory Environment 4 2.1.1 The HM Treasury 4 2.1.2 The Bank of England 4 2.1.3 Financial Service Authority 4 2.1.4 The changes of Financial Services Authority 5 2.1.5 Supervision structures of EU 5 2.2 Date description 6 2.2.1 Total equity-to-asset ratio 6 2.2.2 Tier 1 capital ratio 7 2.2.3 Total loans-to-deposits ratio 8 2.2.4 Cash ratio 9 2.2.5 The ratio of cash balances at the central bank to total deposits 10 2.3 Correlation analysis 10 2.3.1 Total equity-to-asset ratio 11 2.3.2 Tier 1 capital ratio 11 2.3.3 Total loans-to-deposits ratio 11 2.3.4 Cash ratio 12 2.3.5 The ratio of cash balances at the central bank to total deposits 12 2.4 OLS Regression analysis 12 2.4.1 Total equity-to-asset ratio 12 2.4.2 Tier 1 capital ratio 13 2.4.3 Total loans-to-deposits ratio 13 2.4.4 Cash ratio 14 2.4.5 The ratio of cash balances at the central bank to total deposits 14 2.5 Regulatory concerns 15
III Concluding remarks with policy recommendations 17
Reference 19
Appendix 21
I Introduction
This report is aimed to explore the relationship between the performance of Barclays Bank and the risk regulation. By underlying trend analysis, correlation analysis, and regression analysis on five important ratios which could represent the performance of Barclays Bank, the report will show if there is any statistical evidence to confirm the hypothesis that a high compliance with regulation is essential for a stable banking system. This report also will provide an overview of the UK banking Regulation and Supervisory Practice and identify the concerns of Barclays Bank. The objective is to provide some useful recommendations for its management with the requirements of the regulatory.
II Findings
2.1 An overview of the UK Financial Regulatory Environment
Banking regulation is designed for the central goal of financial stability. In the UK, HM