Why is the UK Banking System so Big and is that a Problem?

11 Pages Posted: 17 Dec 2014

See all articles by Oliver Bush

Oliver Bush

London School of Economics & Political Science (LSE); Bank of England

Samuel Knott

Bank of England

Chris Peacock

Bank of England - Monetary Analysis

Date Written: December 8, 2014

Abstract

Over the past 40 years the size of the UK banking system has grown dramatically and under plausible assumptions it could continue to grow rapidly. This article examines a number of issues related to the size of the UK banking system, including why it is so big and what empirical evidence tells us about the relationship between banking system size and financial stability. This evidence suggests that while size can be important, it is the resilience of the banking system that is key for financial stability.

Suggested Citation

Bush, Oliver and Knott, Samuel and Peacock, Chris, Why is the UK Banking System so Big and is that a Problem? (December 8, 2014). Bank of England Quarterly Bulletin 2014 Q4, Available at SSRN: https://ssrn.com/abstract=2539487

Oliver Bush (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Samuel Knott

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Chris Peacock

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

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