ENVIRONMENTAL ANALYSIS OF
BARCLAYS BANK PLC
SUBMITTED BY : 086311-88(CTL ID)
1. Executive summary
Banks are central to every society; they provide the funding that facilitates business and entrepreneurship, support a sound financial system, and help to create jobs and wealth. Banks in the UK operate in a highly competitive, globalised but lightly-regulated environment. They face increasingly well-informed and ‘energetic’ customers, determined legislators, and electorates who are becoming environmentally aware. They have to adapt to changing economic and market conditions, fast changing consumer needs and expectations. Their business is influenced by global economic, political, regulatory, technological and other unpredictable factors. Consequently, they have to device their strategies, policies and operations to adapt to these changes in order to meet stakeholder expectations and satisfy consumer needs. In this assignment, I try to describe and evaluate changing business environment of Barclays Bank Plc over the last five years.
About Barclays Bank Plc
Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate banking, investment banking, wealth management and investment management services with an extensive international presence in Europe, the Americas, Africa and Asia. Barclays Group headquarters is at 1 Churchill Place in London, UK, but it has operations all over the world, with products and services to meet the needs of customers and clients in local markets. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs more than 144,000 people. Barclays moves, lends, invests and protects money for more than 48 million customers and clients worldwide.
Barclays is made up of two ‘Clusters’: Global Retail Banking, and Corporate and Investment Banking and Wealth Management, each of which has a number of Business Units. The third major area of the business is Group Centre, which comprises all our essential support functions.
UK Banking Industry
UK’s banking sector, following the US and Japan, is the world’s third largest and considered foremost in terms of: efficiency, dynamism and return on capital. In addition to having one of the largest commercial banking industries, the UK is also a major international centre for investment and private banking. The UK banking sector’s strong international orientation is reflected in the substantial foreign presence and sizeable assets of foreign banks in London. It services 95% of the population with about 3.5% of UK’s workforce - over a million workers. Banks and financial services contribute £70bn to the UK’s national output (6.8% of GDP) and provide 25% of total corporation tax (£8bn) to the UK Government. The main retail banks provide over 125m accounts, clear 7bn transactions a year and facilitate 2.3bn cash withdrawals per year from its network of over 30,000 free ATMs. Banks in the UK contribute well over £100m per year to charities and local community initiatives.
UK banks are authorised and regulated by Financial Services Authority under the Financial Services and Markets Act 2000 (FSMA). Financial Services Authority is an independent non-governmental body which exercises statutory powers under the FSMA. The FSMA requires the FSA to pursue four objectives: to maintain confidence in the UK financial system; to promote public understanding of the financial system; to secure an appropriate degree of protection for consumers whilst recognizing their own responsibilities; and to reduce the scope for financial crime. Banks of England is responsible for maintaining overall stability of the financial system a whole. The Bank...
References: Due to such negative attitude towards banking industry and intense public interest and concern for banks and bankers’ pay, Barclays chief executive John Varley and president Bob Diamond both agreed to sacrifice bonuses for two years, 2008 and 2009.
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