The early part of the twenty-first century has witnessed a sea-change in regulation of the financial system following the financial crisis of 2007-2008. Prior to that financial crisis, the official policy was directed to deregulating the financial system, whereas after 2008 the move is towards increased regulation. This book begins the study of the UK financial system with an introduction to the role of a financial system in an economy, and a very simple model of an economy. In this model the economy is divided into two distinct groups or sectors. The first is the household sector and the second is the firms sector. The book describes the process of financial intermediation, and in doing so, it examines the arguments as to why we need financial institutions. It highlights the nature of financial intermediation, and examines the various roles of financial intermediaries: banks as transformers, undertaking of transformation process, and providers of liquidity insurance. The nature of banking, the operations carried out by banks, and the categories of banking operations are discussed next. The book also examines the investment institutions and other investment vehicles. It examines the role of central banks in the financial system in principle, particularly, the role of the Bank of England. Primary market for equity issues, secondary market, the global stock market crash of October 1987 and efficient markets hypothesis are also covered. The book also looks at the trading of financial derivatives, risk management, bank regulation, and the regulation of life insurance companies, pension funds.
In this chapter we examine the
investmentinstitutions and other investment vehicles (i.e. funds
which finance investment). The number of these intermediaries has
grown rapidly in recent years and collectively they provide an
alternative type of intermediation from the banks; although they too
channel funds from ultimate lenders
residents or non-residents. It is also a financial system which has
seen a considerable degree of change over the years – in the
development of both new markets (e.g. financial futures), new
instruments (e.g. commercial paper), new methods of trading (e.g.
high-frequency trading), new types of investmentinstitutions (e.g.
private equity), the introduction of central
Anthropology after Gluckman places the intimate circle around Max Gluckman, his Manchester School, in the vanguard of modern social anthropology. The book discloses the School’s intense, argument-rich collaborations, developing beyond an original focus in south and central Africa. Where outsiders have seen dominating leadership by Gluckman, a common stock of problems, and much about conflict, Richard Werbner highlights how insiders were drawn to explore many new frontiers in fieldwork and in-depth, reflexive ethnography, because they themselves, in class and gender, ethnicity and national origins, were remarkably inclusive. Characteristically different anthropologists, their careers met the challenges of being a public intellectual, an international celebrity, an institutional good citizen, a social and political activist, an advocate of legal justice. Their living legacies are shown, for the first time, through interlinked social biography and intellectual history to reach broadly across politics, law, ritual, semiotics, development studies, comparative urbanism, social network analysis and mathematical sociology. Innovation – in research methods and techniques, in documenting people’s changing praxis and social relations, in comparative analysis and a destabilizing strategy of re-analysis within ethnography – became the School’s hallmark. Much of this exploration confronted troubling times in Africa, colonial and postcolonial, which put the anthropologists and their anthropological knowledge at risk. The resurgence of debate about decolonization makes the accounts of fierce, End of Empire argument and recent postcolonial anthropology all the more topical. The lessons, even in activism, for social scientists, teachers as well as graduate and undergraduate students are compelling for our own troubled times.
category ‘monetary financial institutions’ (which
includes retail and wholesale banks, as well as building
2.7.2 Growth of investmentinstitutions
Since 1980, the investmentinstitutions (pension funds, life assurance companies, unit and
investment trusts) have grown at a fast rate which is comparable
businesses to set up and then run their own
schools, free from local authority control (see Wright, 2012 ; Higham, 2014 ).
Third, the National Citizen Service was established for 16- to
17-year-olds as a voluntary, personal and social development programme
(see Mycock and Tonge, 2011 ; Mills and Waite, 2017 ). Fourth, the Big Society Bank was launched
under the name Big Society Capital, as an independent social investment
these placings will be
re-placed with further investors, who are generally the
Offers for sale by tender. In this case the public is
invited to purchase shares at any price over a publicised
minimum. A single so-called ‘striking price’ is
established at which it is believed that the issue will be fully
exposure, but interest rate exposure may be analysed in the same
way. Transaction exposure occurs through changing interest payments
or receipts following a change in the interest rate structure.
Translation exposure can occur through changes in the value of
financial assets held originating from changes in interest rates.
This is particularly applicable to the position of investment
saw significant falls in property prices. Rather, it is to say that over
a number of years property has tended to increase in value by more than
inflation. This, as we shall see in chapter 4 , explains why the long-term investmentinstitutions
are significant holders of property in their portfolios.
Most financial instruments offer an
explicit cash return to their holders. This return
reflects the differing demand and
supply conditions in the various markets. It is quite plausible to
see the bond market as segmented, with investmentinstitutions such
as pension funds and the life assurance companies preferring to
operate at the long-term end, and with banks and building societies,
for which liquidity is more critical, preferring to operate at the