Why Is The UK Banking System So big And Is That A Problem?

Though size can be important, it is the resilience of a banking system that is key for financial stability, notes a Bank of England report. In a report co-authored by Oliver Bush of Bank of England titled: “Why is the UK banking system so big and is that a problem?”, the authors discuss whether banking system size is a robust leading indicator of a crisis. UK Banks’ total assets constitute 450% of nominal GDP The Bank of England report notes the UK banking system is large relative to most other major economies.  The report highlights three key features of the…