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The crisis in UK banking

Author

Listed:
  • John Goddard
  • Phil Molyneux
  • John O. S. Wilson

Abstract

Unparalleled turmoil in the banking system over the past two years has impacted severely on the UK's economic prospects. What was once a profitable, fastgrowing, dynamic and highly innovative banking sector has been publicly humiliated, while its lending capacity has stalled. This article highlights the evolution of the credit crisis in the UK, as the fallout from American subprime lending and the housing market bubble spread rapidly across the Atlantic. Lessons from the crisis and policy recommendations are considered, focusing on rebuilding bank liquidity and capital, strengthening bank supervision and regulation, and improving risk evaluation and risk management practices throughout the banking and financial system.

Suggested Citation

  • John Goddard & Phil Molyneux & John O. S. Wilson, 2009. "The crisis in UK banking," Public Money & Management, Taylor & Francis Journals, vol. 29(5), pages 277-284, September.
    • Handle: RePEc:taf:pubmmg:v:29:y:2009:i:5:p:277-284
    DOI: 10.1080/09540960903205881
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    References listed on IDEAS

    as
    1. Markus K. Brunnermeier, 2009. "Deciphering the Liquidity and Credit Crunch 2007-2008," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 77-100, Winter.
    2. David T. Llewellyn, 2008. "The Northern Rock crisis: a multi-dimensional problem waiting to happen," Proceedings 1089, Federal Reserve Bank of Chicago.
    3. David T. Llewellyn, 2008. "The Northern Rock crisis: a multi‐dimensional problem waiting to happen," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 16(1), pages 35-58, February.
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    Cited by:

    1. Soedarmono, Wahyoe & Machrouh, Fouad & Tarazi, Amine, 2013. "Bank competition, crisis and risk taking: Evidence from emerging markets in Asia," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 23(C), pages 196-221.
    2. Pennathur, Anita & Smith, Deborah & Subrahmanyam, Vijaya, 2014. "The stock market impact of government interventions on financial services industry groups: Evidence from the 2007–2009 crisis," Journal of Economics and Business, Elsevier, vol. 71(C), pages 22-44.
    3. Kusi, Baah Aye & Agbloyor, Elikplimi Komla & Gyeke-Dako, Agyapomaa & Asongu, Simplice Anutechia, 2020. "Financial Sector transparency and net interest margins: Should the private or public Sector lead financial Sector transparency?," Research in International Business and Finance, Elsevier, vol. 54(C).
    4. Herzig, Christian & Moon, Jeremy, 2013. "Discourses on corporate social ir/responsibility in the financial sector," Journal of Business Research, Elsevier, vol. 66(10), pages 1870-1880.
    5. Wilson, John O.S. & Casu, Barbara & Girardone, Claudia & Molyneux, Philip, 2010. "Emerging themes in banking: Recent literature and directions for future research," The British Accounting Review, Elsevier, vol. 42(3), pages 153-169.

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