Bright Business Consulting LLP

Monday, July 16, 2018

Banking and Finance in United Kindgom (UK)

"Banking and Finance in United Kingdom - UK" are distinguished by the centrality and the key role played by the City of London. In fact, both for domestic banking market and international finance one, the City of London retains its role as a firm guide for the global strategy.

It is a prosperous financial and commercial center in the so-called square mile containing the City, which produces an annual 4% GDP.

Around the City renowned institutions work, such as The Central Bank (Bank of England), the Stock Exchange, the Courts of Justice, the headquarters of the City Council (Guildhall) as well as many banks and insurance companies worldwide.

The Central Bank is responsible for maintaining a stable and efficient monetary and financial context to ensure a functional economy development.

Pursuing this objective, there are three main purposes:

  • Keeping the integrity and value of the currency.
  • Safeguarding the stability of the financial system, even internationally.
  • Ensuring the effectiveness of Services.

In addition, the Central Bank's primary target is to support the Government in limiting inflation, providing information on the policies of the exchange rate to be adopted, and since 1987 it has had the role of supervisor of British banking system. Together, British Government and the Central Bank are engaged in policies of credit support for small and medium-sized enterprises and individuals.

Important support to small and medium enterprises and individuals come from British Government and the Central Bank as loans. FLS (Funding for Lending Scheme) was open to provides for a budget of 80 billion GBP of loans. So far families paying real estate mortgages at sustainable rates has profited from them but the focus is now given to enterprises.

There is more. Credit management, which has always been the exclusive domain of banks, has been granted to other institutions, such as leasing and factoring firms that are important sources of financing to small and medium-sized businesses. The British Government and the Central Bank have issued sovereign bonds designed to collect interest loans on the market to turn directly to financial institutions in charge of financing the current economy. One example is the following: every pound of extra loan that a bank or other institution in charge of grants to small and medium-sized enterprises, will be given a subsidized loan by the Central Bank which will be ten times higher.

FLS is a practice that will give good results. In fact, the incentive-innovation issued by the British Government and the Central Bank in order for banks to finance companies, will surely bring benefits to small and medium-sized enterprises and households. In addition to banks, there are other financial institutions offering banking services: Institute of Land Bank and National Savings.

Building Societies have a reciprocal nature and they essentially operate in building financing, even if they recently have expanded the focus on the collection of retail deposits, granting short-term credits, bank accounts opening and the ability to work with payment.

The National Saving are covered by the pension system in the UK, which is a crucial tool for the welfare and living standards of millions of people and an important part of the so-called "savings industry" in the Country. In the UK the pension system holds a particular importance because of two main reasons: on one hand the investments of social security funds to households are the predominant component (over 50%) of the total financial assets held by them.
This makes social security power is an important part of consumption expenditure and, consequently, it creates significant macroeconomic effects. On the other hand, pension funds and life insurance companies hold a greater influence than other European economies on the functioning of capital markets, particularly the stock one.

The Governor of the Central Bank is betting on the world of finance because he is sure it can get more and more to be one of the centers of national and global economy with a turnover of nine times more than the current British GDP by 2050.

Given that Bright Business Consulting LLP does not work in the field of ITC in the first person, but it is rather involved in this sector through consolidated and calcified synergies in the "PEE Project ", useful to the accompaniment of the companies interested in this market. However, in this scenario the analysis through a "Counselling Aimed at Company Investigations & Commercial Information" is a right suggestion, especially for those businesses that want to operate in the field of " Information and Communication Technologies in United Kingdom – (UK)".


In order to operate successfully, today and in perspective, in the growing field of "Information and Communication Technologies in United Kingdom – (UK)" is absolutely advisable to have a local strong commercial presence also with the aim of accessing both contributions and "Tax Incentives in United Kingdom – (UK)". For such a purpose a British corporate body with suitable accreditations is advisable, so Bright Business Consulting LLP is the ideal partner for the fulfilment of what has been already mentioned.



Bright Business Consulting LLP
58/60 - Kensington Church Street


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