The Governance Framework for Banks in the UK
Journal Title: International Journal of Empirical Finance - Year 2015, Vol 4, Issue 7
Abstract
This paper discusses the regulatory and corporate governance framework for banks in the United Kingdom (UK). Prior to the 2008 Global Financial Crisis (GFC), there was a ‘tripartite’ regulatory system involved in the regulation and management of the financial system in the UK. This system failed during the GFC to take proactive steps to mitigate or avoid risks that threatened the stability of the UK financial system. It was clear that the GFC existing regulatory systems and Codes of Corporate Governance did not protect against bank failure. As a result, the UK government restructured the UK financial regulation system. The new UK regulatory system under the Bank of England has been adopted with the establishment of the Financial Policy Committee (FPC), the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA). The new provisions set in place legislative measures to ensure that there is a free flow of information between the two new regulatory bodies with PRA having broad responsibility for macro measures and the FCA for micro management of financial products and consumers’ rights. In recognition of the special risks of bank failure, the legislation also establishes a separate Bank of England committee, the FPC to make recommendations relating to the stability of banks.
Authors and Affiliations
Asem Tahtamouni, Marwan Al Nahleh
Keywords
Related Articles
- EP ID EP27220
- DOI -
- Views 374
- Downloads 12
Do Firms’ Financial Constraint Can Be Identified By Their Investment-Cash Flow Sensitivity?
In this report, the relationship of financial constraints and the investment cash flow sensitivity is observed by taking the German firms as samples and the main focus is to find out whether the relationship is monotoni...
Corporate Board Attributes And Agency Cost: Evidence From Listed Companies In Ghana
Using a penal data approach, we aim at finding evidence whether board attributes affect agency cost of listed non-financial companies from 2005-2013 in Ghana. In this paper, concentration was on board attributes ignore...
Research of Risk Measure for the CSI 300 Index Futures
The CSI 300 stock index futures are the first financial futures in China; it is also one of the effective hedging tools for investors in stock market. Effective management for risk of the CSI 300 stock index future mark...
Post Consolidation Performance and Earnings Quality of Listed Banks in Nigeria
This study looks at Post consolidation Performance and earnings quality of listed banks in Nigeria from 2008-2012. This exercise was done against the background of speculations that only eight (8) of the existing banks...
Accounting Information Management and Performance of Small Business Enterprises in Mbale Municipality
The study sought to establish the relationship between accounting information management and performance of Small Business Enterprises (SBEs) in Mbale municipality. A cross sectional and co-relational design was used w...