An Overview of the UK Banking Sector Since the Basel Accord: Insights from a New Regulatory Database

63 Pages Posted: 20 Mar 2017

See all articles by Sebastian de-Ramon

Sebastian de-Ramon

Bank of England; Bank of England - Prudential Regulation Authority; Cambridge Econometrics

William Francis

Bank of England

Kristoffer Milonas

Bank of England

Date Written: March 17, 2017

Abstract

This paper provides an overview of the dramatic changes in the UK banking sector over the 1989–2013 period, seen through the lens of a newly assembled database built from banks’ regulatory reports. This database, which we refer to as the Historical Banking Regulatory Database (HBRD), covers financial statement and confidential regulatory information for all authorized UK banks and building societies at the consolidated (group) and standalone (bank) level. As a result, it permits both a more comprehensive picture of the UK banking sector as well as a more refined view of subsectors, such as small banks, than possible with other existing data sets (eg from external vendors or aggregate statistics). The overview focuses on developments in banks’ CAMEL characteristics (Capital adequacy, Asset quality, Management skills, Earnings performance and Liquidity), and relates these developments to concurrent regulatory changes, such as the Basel Market Risk Amendment. We also suggest ways in which the database can be used for evidence-based research and policy analysis.

Keywords: Bank regulation, regulatory data, database, CAMEL, capital, capital requirements, asset quality, management, earnings performance, liquidity, funding

JEL Classification: G21, G28, N20, G01

Suggested Citation

de-Ramon, Sebastian and Francis, William and Milonas, Kristoffer, An Overview of the UK Banking Sector Since the Basel Accord: Insights from a New Regulatory Database (March 17, 2017). Bank of England Working Paper No. 652, Available at SSRN: https://ssrn.com/abstract=2937792 or http://dx.doi.org/10.2139/ssrn.2937792

Sebastian De-Ramon (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Bank of England - Prudential Regulation Authority ( email )

20 Moorgate
London, EC2R 6DA
United Kingdom

Cambridge Econometrics ( email )

Reuben House
Covent Garden
Cambridge, CB1 2HT
United Kingdom

HOME PAGE: http://https://www.bankofengland.co.uk/research/researchers/sebastian-de-ramon

William Francis

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Kristoffer Milonas

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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