The purpose of this report is to evaluate the relative size and importance of banks in respect to the United Kingdom’s economy, also to indicate the number and size of the competing companies and organisations. Any relevant issues which are currently affecting the industry will also be detailed. The majority of the research that was carried out in order to complete this report was secondary, predominantly from the internet as this is the best resource for the task in hand.
In order to be able to get a full understanding of the size and importance of banks and how they contribute to the U.K’s economy you should first look at the fact that the British government have spent 19.8% of the entire countries GDP on bailing out the banking industry. This can only reflect on the importance that the banking industry holds within the British government’s current objectives. Appendix 1 is a list of banks within the UK compiled by the F.S.A (Financial Services Authority) which regulates all the financial services within the UK. The sheer number of banks which are available clearly demonstrates that the banking industry is still a lucrative business with some of the top banks reporting record breaking multi billion pound profits in what is said to be an economic crisis. ‘HSBC will wield the axe despite increasing its profits by 3pc to £7billion between January and June – equivalent to £40million a day.(Duke, S. (2011). HSBC post £7billion profit. Available: http://www.dailymail.co.uk/news/article-2021007/HSBC-announce-30-000-job-losses--posting-profits-7bn.html. Last accessed 18th Oct) ’. But they are still showing signs of little growth or movement by making thousands of employees redundant and selling off branches, the Royal Bank of Scotland (RBS) sold off 318 branches nationally to the Spanish banking giant Santander in a £1.65billion deal....