The Financial Services Industry Flashcards
What are the UK’s general Economic Policy aims?
Sustainable growth, Control inflation, full employment, Balance of payments
What is Fiscal Policy?
Government policy on taxation and public borrowing / spending.
What is the PSNCR?
PSNCR (Public sector net cash requirement) is the short fall between what the government spends and the income (taxes) it receives. The government is usually in a surplus and needs to have gilts to bring in other income.
What is Monetary Policy?
The BOE control interest rates and money supply. They do this through setting the Base Rate and Quantitative Easing.
What is the governments inflation target?
2%
Who sets the interest rates in the UK?
The Monetary Policy Committee
How often do the MPC meet to set interest rates?
8 times a year
What is the primary market?
New issues of shares. IPO’s. The London stock exchange within the UK.
What standards do companies have to meet before they list on the Primary Market?
Their size, no. of securities they are introducing, information they give investors
What is the secondary market?
Allows investors to buy and sell securities which are already in the market.
What is the balance of payments?
Total of the countries exports and imports
Who is responsible for implementing the governments financial and economic policy
The Treasury
What is the Lamfalussy Process?
A new framework for implementing EU legislation.
What is Level 1 in the Lamfalussy framework?
Framework acts -
What is the ESMA and what are its roles?
The European Securities and Markets Authority. Safeguards the stability of the EUs financial system by ensuring the integrity, transparency and efficiency of the securities markets. Tries to converge markets within financial sectors. Created a single rule book in Europe.
What is the ECB? And what are its tasks?
The European Central Bank - main task is to maintain the purchasing power of the Euro and have price stability. They authorise the issuance of bank notes, define euro system policies, statutory reports.
What are chinas main regulatory bodies? (4)
The China securities regulatory commission (CSRC). The China banking regulatory commission (CBRC). The China insurance regulatory commission (CIRC). The peoples bank of China (PBOC).
What are the main regulatory bodies in Hong Kong? (5)
Securities and future exchange (SFC). Stock exchange of Hong Kong (SEHK). Hong Kong futures exchange (HKFE). Hung Kong Monetary Authority (HKMA) . Independent Insurance Authority (IIA).
What are the main regulatory bodies in Japan?
Financial Services Agency (FSA). Securities and Exchange Surveillance Committee (SESC).
What are the main regulatory bodies in Singapore?
Monetary authority of Singapore (MÁS). Singapore exchange Securites trading (SGX). Securities industry council (SIC).
What are money market operations?
The borrowing and lending of highly liquid, short term assets and securities conducted between banks.
What is Narrow Money?
All liquid financial assets.
What is Broad Money?
Sum of wide range of financial assets, including less liquid assets.
Which BoE monetary aggregates is this ‘ the measure of notes and coins in circulation outside the BoE, plus operational deposits at the BoE. ‘Narrow money’
M0
