The UK Banking Industry

Complete novice when it comes to this subject.
Can anyone explain the following.
What it actually is and how much it is worth to the UK economy
Why do we give it so much credence/reverence
Can we do without it.
Like i said. Not taking the piss but i know zilch about it, other than we seem to hold it as essential and the slimy bastard Macron is trying to take it to France post Brexit.
Is it worth keeping and does the man in the street see any of the benefits from it or is it just a whizkids playground
 

Lonz

Striker
Simply put, in the current global set up we can't do without it. You first need to remember that they are first an foremost a business themselves. A quick Google says the finanial servies setor contributed £132bn to GDP (6.9%) in 2018.

We we need it so much: To start a business or grow a business you need investment. That can come in from your own cash, but more often than not with larger businesses and larger acquisitions (say £billiions for example), will require a group of banks or investments funds to fork out the cash using your money and cash deposits to do so. They're only going to do that if they think they're going to make a profit on that loan example, and the interest rates are based on risk. Higher risk = higher interest rate a business will need to pay on the loan.

If banks aren't lending money, then businesses can and will struggle to grow, or even stay afloat if they need a short-term cash injection. This feeds down to wages/jobs relatively quickly hence why the financial crisis was such a big deal. A bad financial services sector in the UK can truly fuck us up. Unfortunately, people pay more attention to what the bankers get paid than the work they actually do.
 
Simply put, in the current global set up we can't do without it. You first need to remember that they are first an foremost a business themselves. A quick Google says the finanial servies setor contributed £132bn to GDP (6.9%) in 2018.

We we need it so much: To start a business or grow a business you need investment. That can come in from your own cash, but more often than not with larger businesses and larger acquisitions (say £billiions for example), will require a group of banks or investments funds to fork out the cash using your money and cash deposits to do so. They're only going to do that if they think they're going to make a profit on that loan example, and the interest rates are based on risk. Higher risk = higher interest rate a business will need to pay on the loan.

If banks aren't lending money, then businesses can and will struggle to grow, or even stay afloat if they need a short-term cash injection. This feeds down to wages/jobs relatively quickly hence why the financial crisis was such a big deal. A bad financial services sector in the UK can truly fuck us up. Unfortunately, people pay more attention to what the bankers get paid than the work they actually do.
Cheers mate. What about the stock market, how does that tie in, and could we do without it.
 

Lonz

Striker
Cheers mate. What about the stock market, how does that tie in, and could we do without it.
Stock market is just another way of business raising cash. When a business gets listed, you can buy a share in the business. You'd do this is if you think you're going to gain a profit by the share price going up in value in the future or by receiving dividends every year. Again, the share price is determined by risk and the present value of future future of expected cash flows.
 
Cheers mate. What about the stock market, how does that tie in, and could we do without it.
As well as investing in businesses, banks will invest money in various markets in order to generate cash.

Companies float their stock in this way to generate capital. Its a way for companies to gain investment.

Im not sure what you mean 'could we do without it?' mind? Banks moving to France wouldnt stop companies listing their shares.
 
Im not sure what you mean 'could we do without it?' mind? Banks moving to France wouldnt stop companies listing their shares.
Mate, i'm not sure what i mean so you've got little chance. Lets say for instance the banking institutes move all their offices to France or Holland as is being mooted and we lose the 132bn(6.9% of GDP) as above. What would be the fallout from that apart from the 132bn. How would we proceed after that. Specifically the man in the street looking for a mortgage. I would assume that nothing would change as it doesn't really matter where the loan comes from.
Basically what i'm asking is, if Macron succeeds with his plan would we notice a difference apart from 132bn lighter and a few more on the dole.
 
Mate, i'm not sure what i mean so you've got little chance. Lets say for instance the banking institutes move all their offices to France or Holland as is being mooted and we lose the 132bn(6.9% of GDP) as above. What would be the fallout from that apart from the 132bn. How would we proceed after that. Specifically the man in the street looking for a mortgage. I would assume that nothing would change as it doesn't really matter where the loan comes from.
Basically what i'm asking is, if Macron succeeds with his plan would we notice a difference apart from 132bn lighter and a few more on the dole.
It would mean that % would shrink.

In terms of predicting how that would affect people looking for a mortgage its difficult to predict.

They'd still be available. Its possible the inevitable contraction in the economy makes banks more risk averse, making it harder to get one.
 
Mate, i'm not sure what i mean so you've got little chance. Lets say for instance the banking institutes move all their offices to France or Holland as is being mooted and we lose the 132bn(6.9% of GDP) as above. What would be the fallout from that apart from the 132bn. How would we proceed after that. Specifically the man in the street looking for a mortgage. I would assume that nothing would change as it doesn't really matter where the loan comes from.
Basically what i'm asking is, if Macron succeeds with his plan would we notice a difference apart from 132bn lighter and a few more on the dole.
We’d still have banks in this country, but a lot of the non-retail customer facing stuff could be moved abroad, and that would mean loss of jobs. A lot of the investment and “complex” banking that a lot of people don’t really understand (and why those types of bankers get paid what they do) could potentially move abroad, but also some of the lower paid work such as back office processing could also go. Some banks already do a lot of it in places like India. That wouldn’t necessarily be cheaper in France, but if you’re centralising some other parts of your business you might have a full review of your entire operating model.
 
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We’d still have banks in this country, but a lot of the non-retail customer facing stuff could be moved abroad, and that would mean loss of jobs. A lot of the investment and “complex” banking that a lot of people don’t really understand (and why those types of bankers get paid what they do) could potentially move abroad, but also some of the lower paid work such as back office processing could also go. Some banks already do a lot of it in places like India. That wouldn’t necessarily be cheaper in France, but if you’re centralising some other parts of your business you might have a full review of your entire operating model.
Thanks @HellsBells When you say we would still have banks do you mean Local branches that would directly report to a new Head Office in Paris or Amsterdam
 
Thanks @HellsBells When you say we would still have banks do you mean Local branches that would directly report to a new Head Office in Paris or Amsterdam
Possibly, or they may just move certain parts of their operations abroad, more likely the investment side in order to get access to the EU markets. That’s probably more likely following the Ring Fencing legislation Osbourne brought in after 2008 as banks have to carve out the “casino” bit of their operations now.

As customers and businesses we’d still be able to access banking services like accounts and loans but banks would be structured differently. So it’s mainly the impact on jobs, and then the effect on the economy that I can see. Like it or not, bonus time has a big effect on certain parts of the U.K. economy. A lot of spending and a lot of tax paid.
Edit, it’s probably also where they report their profit and pay tax too, but I’m not an accountant and banking structures are complicated so I’m not sure.
 
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tunstallhill

Striker
Mate, i'm not sure what i mean so you've got little chance. Lets say for instance the banking institutes move all their offices to France or Holland as is being mooted and we lose the 132bn(6.9% of GDP) as above. What would be the fallout from that apart from the 132bn. How would we proceed after that. Specifically the man in the street looking for a mortgage. I would assume that nothing would change as it doesn't really matter where the loan comes from.
Basically what i'm asking is, if Macron succeeds with his plan would we notice a difference apart from 132bn lighter and a few more on the dole.
i'm no expert, but you'd think, and i'm prepared to be put right and educated here, that after brexit (if it goes the hard way as some brexiteers seem to want) then the only banking institutes in the UK will be ones that service UK businesses and are actually needed by the residents of the UK. so any banking services that are 'international' could move to a different country to operate, as they can now. if a company wants to move its operations to France or Holland, then they could theoretically do that now regardless of brexit. if brexit is going to mean its harder for them to operate and turn a profit, then of course they will move to where suits them better. and we will be left with whatever finanical sector % of GDP is left that the UK requires. is my guess

hopefully no deal brexit isnt as bad as what it feels like at the moment and whatever macron can offer as an incentive to move their, we can offer to keep them here.

still fucking hate the bastards like
 

Cow

Subs Bench
Complete novice when it comes to this subject.
Can anyone explain the following.
What it actually is and how much it is worth to the UK economy
Why do we give it so much credence/reverence
Can we do without it.
Like i said. Not taking the piss but i know zilch about it, other than we seem to hold it as essential and the slimy bastard Macron is trying to take it to France post Brexit.
Is it worth keeping and does the man in the street see any of the benefits from it or is it just a whizkids playground
It’s all a con, money doesn’t exist, it’s corrupt as fuck. There some good videos on YouTube about how money and banks came about. It’s basically legalised fraud. This is all you need to know.

Thank me later brother
 
It’s all a con, money doesn’t exist, it’s corrupt as fuck. There some good videos on YouTube about how money and banks came about. It’s basically legalised fraud. This is all you need to know.

Thank me later brother
Vive La Revolutione
 
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Cow

Subs Bench
I work in banking and I hate French bankers. Absolute worst. I'm also married to one.

You must be very long crypto currency then
I know more about banks and the banking system than you could ever know mate
Cheers mate. What about the stock market, how does that tie in, and could we do without it.
Yes, of course we could do without it but it’ll never happen. Think about it, banks don’t carry the total value of all the currency held on the planet, stock markets trade in god knows what...it’s all virtual, it’s all hearsay and witches potion shit...but, we’re brainwashed to believe the world will end if banks fail. It’s all bollocks mate. Trust me. For millennia people managed without banks and survived. Banks appeared a few hundred years ago, what’s happened since? Capitalism, communism, greed and selfishness on an almost global scale.

Fuck the banks
 
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monkeytassle

Striker
I know more about banks and the banking system than you could ever know mate

Yes, of course we could do without it but it’ll never happen. Think about it, banks don’t carry the total value of all the currency held on the planet, stock markets trade in god knows what...it’s all virtual, it’s all hearsay and witches potion shit...but, we’re brainwashed to believe the world will end if banks fail. It’s all bollocks mate. Trust me. For millennia people managed without banks and survived. Banks appeared a few hundred years ago, what’s happened since? Capitalism, communism, greed and selfishness on an almost global scale.

Fuck the banks
I can say with cast iron certainty you dont
 

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