UK Financial Markets

Abstract

The banking system which we looked at very broadly in Chapter 1 is the major short-term money market. The banks borrow mostly on a short-term basis by accepting deposits from their customers and through acquiring wholesale funds; they also lend in the main on a short-term basis, though there is now a tendency to lend on longer term. Included in this very important money market, you will recall, are the Bank of England, the London, Scottish and Northern Ireland clearing banks, the merchant banks, British overseas banks, foreign banks, consortium banks, the National Savings Bank, the TSBs and the National Girobank.