- Created by: Shajith Sharan
- Created on: 07-10-18 19:42
FEATURES OF FINANCIAL INSTITUTIONS:
Bank of England is known as the UK Central Bank where it does the following down below:
- prints banknotes
- controls inflation
- separates bank and insurers
- ensures stability in the financial system
Independent from the Government & Financial Institution
Focuses on managing the flow of money in the economy
Considers regional, national and global factors when making the decision
Helps to create financial stability and confidence
Decisions can damage financial institutions
How independent from the government is the Bank of England's decision
Direction comes from one person (Governor of Great Britain)
Decisions not always represent the whole UK needs
A bank is a place where the money will change hands.
Banks offer a range of services most common ones tend to be lending and saving based.
Banks offer a safe and secure place to keep the items of rate as a main financial focus value.
Banks tend to be privately owned and aim to make a profit for their shareholders.
A wide range of financial packages that customers have access to.
Tend to have the physical presence in the High Street as well as online.
Offers convenient access to money in accounts.
Keeps many safe and secure.
Focuses on profits means low-interest rates or high bank charge.
Poor levels of customer service (resistance into switching).
Access to branches has declined in local areas.
They are places where the money will change hands.
To offer financial savings mainly based on lending services.
Mutual form of ownership, customers and members have the right to vote and get shares of profits.
Building societies are more locally based, however, these have been growing over time.
Mutual and has members from the start.
The sharing of profits back to members and invest for better service.
Tend to be local and more personalised.
Offers the range of financial services.
Lack of the level of coverage that larger banks tend to have.
Lack of the economies to compete with larger financial organisations.
Lack of the level of the range of products and services by larger financial organisations.
Is a community financial organisation saving personal and small business needs.
Focuses mainly on services and not profits as they offer the best rates.
All decisions are democratically made by numbers and all of the profits are invested back.
Regulated by Financial Conduct Academy.
Customers are part owners of the organisation, so having to claim voting rights and receiving dividends.
Interest rates tend to be better than those offered by the banks.
Community interest is the main focus from above end and beyond profit.
Reduced access to branches and cash machines (ATMs).
Reduced levels of service that can be offered by customers.
Difficult to find the credit union in many areas that day.
NS & I: