According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in United Kingdom is scored 5.0 out of maximum 7.0 and ranked 13th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 5.1 (25th place).
Chart 1. Financial Market Development in United Kingdom. Source: WEF.
Soundness of banks is scored 5.2 bringing United Kingdom into the 59th place.
Chart 2. Soundness of Banks in United Kingdom. Source: WEF.
Banks in the United Kingdom are mainly focused on the following areas:
Financial Conduct Authority
Currently there are 374 credit institutions operating in United Kingdom.
In 2018 consolidated banking assets in the United Kingdom were 9,930.45 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in United Kingdom.
Recent structural changes (2013 - 2018) of the banking sector of United Kingdom are summarised in Table 1.
|Number of Opened Banks||9||9||9||16||15||15|
|Number of Closed Banks||23||9||7||13||4||7|
Table 1. Recent structural changes in the banking sector of United Kingdom.
The list of the most recently opened banks in United Kingdom is provided in Table 2.
|Evolution Money Limited (new)||October 2018|
|Raiffeisen Bank International AG Großbritannien (new)||September 2018|
|BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse AG Großbritannien (new)||September 2018|
|BANCA POPOLARE DI MILANO (new)||August 2018|
|RCI Bank UK Limited (new)||June 2018|
|Triodos UK Limited (new)||May 2018|
|KB Kookmin Bank London Branch (new)||March 2018|
|AS LHV Pank (new)||March 2018|
|Citibank UK Limited (new)||March 2018|
|RBC INVESTOR SERVICES BANK SA (new)||January 2018|
Table 2. The most recently opened banks in United Kingdom.
All the credit institutions operating in United Kingdom can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||151|
There are 151 branches of foreign banks from 37 different countries in United Kingdom. Table 4 shows 10 countries having the biggest number of branches in United Kingdom.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in United Kingdom are summarised in Table 5.
Table 5. Deposit guarantee scheme in United Kingdom.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Pound sterling) deposit ceiling for United Kingdom is set to Aaa (prime), foreign currency deposit ceiling is Aa2 (high grade).
Chart 4. Deposit Rates in United Kingdom. Source: ECB.