With the UK banking industry already struggling to cope with the global financial crisis, the latest news on the UK’s banking system has come to light, with a new report saying the country is among the most vulnerable to a collapse of the Eurozone’s single currency.
In an effort to tackle the growing problem of “the banking system as a whole” – the lack of transparency around the UK financial sector – the Bank of England has set out its vision for the banking sector, saying that it aims to have the “bank as the central institution of the economy by 2030.”
But in the UK, the banking industry is currently facing the kind of scrutiny it has never faced before, with banks and their regulators in Britain being subject to intense scrutiny by the country’s regulator.
With this latest report from the Bank’s Financial Conduct Authority, the financial sector is being scrutinized more closely than ever before.
“The financial sector will need to adapt to the pressures of the financial crisis,” said Nicky Hager, director general of the Banking and Monetary Reform, a coalition of government, business and civil society groups.
“It is a real challenge and it is one that will be tested.”
The report says the banking system is one of the largest employers of skilled workers in the country, with over a million people employed in the sector.
The report also states that the number of banks has shrunk from an average of over 500 in 2008 to around 200 in 2015.
The number of branches in the United Kingdom has dropped from an estimated 2.5 million in 2008, to around 600,000 today, with the number growing by just over 2,000 in the same period.
The bank has also been under intense scrutiny in the past few years.
It was criticised for not doing enough to crack down on fraud, and its own financial regulators were criticised for failing to clamp down on the banks’ excess risk, and failing to take a tougher stance against them.
In the wake of the recent Brexit vote, it was suggested that it would be better to leave the EU, and instead focus on reforming the UK economy.