THE BANKING SYSTEM OF GREAT BRITAIN: EVOLUTION AND CURRENT STATE OF DEVELOPMENT

Abstract

The stability of its economic system as a whole depends on the successful functioning of the banking system of any state. An efficient and reliable banking system ensures innovative business development in the country. Great Britain is one of the leading and economically developed countries in the world, and London is considered an international financial center. In view of this, the study of the evolutionary development of the banking system of the United Kingdom and the assessment of its current state provides an informative basis for understanding the ways of building an effective national banking system. This work is devoted to the UK banking system. The purpose of the article is to study the evolution of the development of the UK banking system from the time of its formation to the present. The methodology of this study is based on the analysis of the dynamics of the assets of financial and credit institutions of the United Kingdom in different periods of time, including after the global macroeconomic shocks, the analysis of the calculated indicators of the ratio of bank assets to the GDP of the country from the middle of the 20th century to the present. The information base was served by reports on the financial stability of the Bank of England, scientific works of foreign and domestic scientists, Internet resources, and statistical data on the operation of the British banking system. As a result of the study, the activities of financial and credit institutions of the United Kingdom in the 20th century, the evolution of their creation, absorption and consolidation were analyzed. The services provided by different financial and credit institutions to clients, the division of the money market between different financial and credit institutions are described. The period of reform of the UK banking sector is indicated in the article. The paper examines the main trends in the volume of assets in the current period. Forecasts of the Bank of England regarding the prospects for the stability of the British banking system, given the growing threats in the world economy, are given. The results of stress testing of the UK banking system are described. Conclusions are made regarding the further stability of the banking system.