Abstract
The British financial system has a dual structure with two parallel financial systems since it is both the national system of the United Kingdom, but also one of the world’s major international financial centers and hosts the largest component of the Eurocurrency and bond markets. In 1989, of the 551 banking institutions authorized in the U.K., 256 were foreign and 68 were U.K.-incorporated subsidiaries of overseas institutions. Authorized banking institutions from 64 countries had offices in the U.K. Of the £1000 billion of assets of banks in the U.K., 59% are denominated in foreign currency, and the foreign-currency assets of foreign banks in the U.K. represent 83% of the total, with the largest single component being that of Japanese banks. Thus, in terms of volume of assets, the foreign-currency business of banks in the U.K. is considerably larger than sterling domestic business.
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Llewellyn, D.T. (1992). Competition, Diversification, and Structural Change in the British Financial System. In: Kaufman, G.G. (eds) Banking Structures in Major Countries. Innovations in Financial Markets and Institutions, vol 6. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2946-6_9
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DOI: https://doi.org/10.1007/978-94-011-2946-6_9
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