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UK and US Banking: Similarities and Differences

  • David Rogers
Chapter
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Abstract

I argued in Chapter 1 that the banking industry worldwide has evolved since the 1960s from a protected, cartel-like state to one subject to continued competitive threat. This parallels the evolution of financial services more broadly, from a condition of segmentation in which sharp market boundaries separated investment banking, commercial banking, insurance, home mortgages and asset management to one in which each was diversifying onto the others’ territory.1 The driving forces behind these changes — globalization, the rise of capital markets, new technology, lowered entry barriers, and a consequent disintermediation of banks — have proceeded on a transnational basis, forcing banks in all countries of the world to adapt.

Keywords

Financial Service Investment Banking Bank Failure Community Bank Universal Banking 
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Notes and references

  1. 1.
    Itzhak Swary and Barry Topf, Global Financial Regulation, Blackwell, Cambridge, 1992, p. 4.Google Scholar
  2. 2.
    Banking scholars Steven Pilloff and Anthony Santomero argue that we need more field-based, managerial-process, case studies that are more longitudinal and with more organizational detail in order to understand better why some banks fail and others succeed. See their paper, The Value Effects of Bank Mergers and Acquisitions’, presented at the Conference on Mergers of Financial Institutions, New York University Salomon Center, Stern School of Business, in association with New York University Law School, Center for The Study of Central Banks.Google Scholar
  3. 3.
    Lawrence Ritter, William Silber and Gregory Udell, Principles of Money, Banking and Financial Markets, (9th edn), Addison Wesley, Reading MA, 1997, Ch. 14.Google Scholar
  4. 4.
    Swary and Topf, op. cit., p. 4.Google Scholar
  5. 5.
    Collins, Money and Banking in the UK: a History, Croom Helm, London, 1988, p. 19ff.Google Scholar
  6. 6.
    American Banker, 7 July, 1997 p. 9.Google Scholar
  7. 7.
    Sidney Ratner, James H. Soltow, and Richard Sylla, The Evolution of the American Economy (2nd edn), Macmillan, New York, 1993, p. 171.Google Scholar
  8. 8.
    Collins, op. cit., pp. 78ff.Google Scholar
  9. 9.
    Michael D. Bardo and Richard Sylla (eds), Anglo-American Financial Systems, Irwin, New York, 1995.Google Scholar
  10. 10.
    Annual Abstract of Banking Statistics, British Bankers Association, Vol. 14, 1997, pp. 66–7.Google Scholar
  11. 11.
    Swary and Topf, op. cit., p. 125.Google Scholar
  12. 12.
    Collins, op. cit., pp. 382–3.Google Scholar
  13. 13.
    Harold van B. Cleveland and Thomas F. Huertas, Citibank, Harvard University Press, Cambridge MA, 1985, p. 285.Google Scholar
  14. 14.
    See Lowell Bryan’s books: Breaking Up the Bank: Rethinking an Industry Under Siege, Dow Jones-Irwin, Homewood IL, 1988; and Bankrupt, Harper Business, New York, 1991.Google Scholar
  15. 15.
    Derek Channon, British Banking Strategy, Macmillan, London and Basingstoke, 1977, p. 161ff.Google Scholar
  16. 16.
    Ibid., p. 153.Google Scholar
  17. 17.
    The Economist, 21 June 1997, p. 72.Google Scholar

Copyright information

© David Rogers 1999

Authors and Affiliations

  • David Rogers

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