What are the effects of the credit crunch on the UK as a whole?
What are the effects of the credit crunch on the UK as a whole and what has the government done so far to help?
It has rendered companies which were thought to be on a sound financial footing highly vulnerable, some have already gone others will follow.
The most important thing to keep UK plc afloat is to keep the bamking system working – if that collapses so does everything else.
The government has tried to ensure that this happens by
Nationalising Northern Rock
Taking a stake in other banks
Effectively forcing the so-called independant Bank of England to cut interest rates
Encouraged Joe Public not to remove his savings from the banks by extending the bank deposit guarantee scheme
Whether this is enough and will prove effective only time will tell – the longer everything continues the more likely it is we will come out the other side and look back with relief that the mess caused by the greed of certain bankers is finally over.
Deposit guarantee scheme
Deposit Guarantee Schemes: A European Perspective
Arnaboldi highlights the importance of one of the three pillars of the Banking Union, the common mechanism for insuring deposits. She claims that integrated financial markets require a European solution with regard to deposit insurance and that the establishment of a pan-European scheme could address the problems for large cross-border banks….
Deposit Insurance Schemes: Funding, Policy and Operational Challenges (Palgrave Macmillan Studies in Banking and Financial Institutions)
This book provides a comprehensive overview of funding arrangements for explicit deposit insurance schemes. Responding to international guidelines and best practice, it discusses policy decisions and operational challenges which deposit insurers face in the financial management of ex-ante deposit insurance funds. Numerous examples are provided, and solutions offered on sources and uses of funds, f…
The New EU Directive (2014/49/EU) On Deposit Guarantee Schemes: An Element of the European Banking Union
The new EU Directive (2014/49/EU) on deposit guarantee schemes: an element of the European Banking Union This study aims at a systematic and comprehensive presentation and analysis of the provisions of the new Directive of the European Parliament and of the Council of 16 April 2014 (2014/49/EU) “on deposit guarantee schemes”. The Directive is part of the new European banking law, which has been sh…