The Crisis in UK Banking: Lessons for Public Policy

16 Pages Posted: 19 Jul 2009

See all articles by John Goddard

John Goddard

University of Wales System - Bangor University

Philip Molyneux

University of Sharjah - College of Business Administration

John O. S. Wilson

University of St. Andrews

Date Written: July 17, 2009

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.

Keywords: Securtisation, Cross-border banking, Financial crisis, Bank regulation, Bank Supervision, UK banking

Suggested Citation

Goddard, John and Molyneux, Philip and Wilson, John O. S., The Crisis in UK Banking: Lessons for Public Policy (July 17, 2009). Available at SSRN: https://ssrn.com/abstract=1435196 or http://dx.doi.org/10.2139/ssrn.1435196

John Goddard

University of Wales System - Bangor University ( email )

Bangor, Gwynedd, Wales LL57 2DG
United Kingdom

Philip Molyneux

University of Sharjah - College of Business Administration ( email )

University City Road
Sharjah, 27272
United Arab Emirates

John O. S. Wilson (Contact Author)

University of St. Andrews ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

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