Essays on The UK Banking Industry Assignment

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The paper "The UK Banking Industry" is a good example of a finance and accounting assignment.   Stakeholders are individuals, groups whom organizations have obligations, rights and normative rationale for moral duties and they include the following; the state, public, business, shareholders and employees. The StateState ownership through increased government funding – for example, the rules controls more than 90% of the Royal Bank of Scotland shares, making them the majority shareholders in the company. The banks became too big and lacked good Monterey policies because they were available liberty to enjoy monopoly that put the state's sovereignty at stake and which forced the government to bail them out.

Just over one year after the crisis, the government had already put in excess of £ 850 billion to save banks. resulted in a budget deficit of £ 90 billion only in 2009, a new record(BBC, 2009). The Banking reforms implement age gave the government Control of Theban sand ushered in a new phase that required banks that fail to be put on a trial basis and denied any future bailout funds. Then new reforms brought back some sanity and consumer confidence in the financial systems and ensured that public funds will not be put at risk in the future. PublicThe UK Government rescued the banking sector by taking on their liabilities that have the potential of rising to more than a trillion pounds and, which will force the government to cut public spending and increase taxation.

Deposits and tax money would be safe (Smith 2002). The effect of previous crisis can stay for many years in terms of high unemployment and inflation. As a result, here, house fees have risen slightly compared to incomes more than anywhere else in the world. BusinessBoth small and large business felt the effects of the crisis through loans refusal and recalls making banks relax on their decision or unable to give fresh credits, even though the customers credit being available.

The banks' refusal to readily lend money forced the interest rates to skyrocket and denied businesses and startups avenues to access affordable finance. The utilitarian approach favors the government more at the expense of the private sector especially small businessesShareholdersShareholders own most of the assets in banks, as it might be expected; Most of the banks are not happy with the current situation.

One example is that of Northern Rock, where its stock as been literally reduced to junk, with the same time to the share prices in most major banks. which have not been spared, and they have fallen to historic lows. It has mainly affected the stock prices of companies that the UK Government has taken a minority stake. For this reason, Shareholder, may not find banking, sector profitable anymore as the demand for the bank shares is still bellowed and may not acquire that boom as it happened before (Smith 2002).

EmployeesEmployees enjoy when the year is higher, however, bank shaves the credibility of financial controls and suffer a great deal if they misappropriate the funds and cause economic losses. For example, in 2013Morgan Chase was found £ 527 million for failure to culture and control the London trader’ s loss of £ 4 billion. Some issues are arising to lightweight include mis-selling of financial products. Such employees would not have a chance of high earning and the external pressure of risks of prosecution and motivate them, and the banking sector can become less attractive.

Few critics believe that Banks may look to offshore their headquarters to avoid the pressure of new laws (Amartya 1987).


Amartya S. (1987). On Ethics and Economics. Massachusetts: Blackwell Publishers

Smith, A. (2002). The Theory of the Moral Sentiments. Cambridge: Cambridge University Press

Marshall, A. (1999). Principles of Economics. New York: MacMillan

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