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Why is the UK banking system so big and is that a problem?

Author

Listed:
  • Oliver Bush

    (Bank of England)

  • Samuel Knott

    (Bank of England)

  • Chris Peacock

    (Bank of England)

Abstract

Over the past 40 years the size of the UK banking system has grown dramatically and under plausible assumptions it could continue to grow rapidly. This article examines a number of issues related to the size of the UK banking system, including why it is so big and what empirical evidence tells us about the relationship between banking system size and financial stability. This evidence suggests that while size can be important, it is the resilience of the banking system that is key for financial stability.

Suggested Citation

  • Oliver Bush & Samuel Knott & Chris Peacock, 2014. "Why is the UK banking system so big and is that a problem?," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 385-395.
    • Handle: RePEc:boe:qbullt:0157
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    References listed on IDEAS

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    Cited by:

    1. Zachary Feinstein, 2017. "Harry Potter and the Goblin Bank of Gringotts," Papers 1703.10469, arXiv.org.
    2. Jamal Ouenniche & Skarleth Carrales, 2018. "Assessing efficiency profiles of UK commercial banks: a DEA analysis with regression-based feedback," Annals of Operations Research, Springer, vol. 266(1), pages 551-587, July.
    3. Leone Leonida & Eleonora Muzzupappa, 2018. "Do Basel Accords influence competition in the banking industry? A comparative analysis of Germany and the UK," Journal of Banking Regulation, Palgrave Macmillan, vol. 19(1), pages 64-72, January.
    4. Jan-Pieter Krahnen & Felix Noth & Ulrich Schüwer, 2017. "Structural Reforms in Banking: The Role of Trading," Journal of Financial Regulation, Oxford University Press, vol. 3(1), pages 66-88.
    5. Oliver Burrows & Fergus Cumming, 2015. "Mapping the UK financial system," Bank of England Quarterly Bulletin, Bank of England, vol. 55(2), pages 114-129.
    6. van der Kwaak, Christiaan & Madeira, João & Palma, Nuno, 2023. "The long-run effects of risk: an equilibrium approach," European Economic Review, Elsevier, vol. 153(C).
    7. Victor Ekpu & Alberto Paloni, 2015. "Financialisation, Business Lending And Profitability In The Uk," Working Papers 2015_18, Business School - Economics, University of Glasgow.
    8. Löher, Jonas & Schröder, Christian, 2017. "Einfluss des Regionalbankensystems auf die Mittelstandsfinanzierung," IfM-Materialien 267, Institut für Mittelstandsforschung (IfM) Bonn.
    9. Eleonora Muzzupappa, 2024. "Competition and Regulation: The Case of the UK Banking Industry," Mathematics, MDPI, vol. 12(8), pages 1-10, April.

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