Topic 5 Flashcards
What is bank rate
the interest rate that the bank of England uses when it lends money to other banks
what do financial service providers do with bank rate
take account of bank rate when they decide how to set interest rate on their own products
what is the banking act of 2009
it provided a set of tools to allow the regulatory authorities to resolve a bank or building society that is in financial difficulty in an orderly way
what was the banking act of 2009 set to reducce
the impact of a bank failure on financial stability and bank customers
what is consumer protection
designing products and services with customers’ need in mind, rather than making maximum profits priority.
what does consumer protection involve
ensuring that customers are not sold products that unsuitable for them, and that they are treated fairly
what is corporate social responsibility
any action or project in which a company goes beyond the interests of its shareholders and senior management in order to benefit other stakeholder groups, normally with either a social or environmental purpose
what is CSR also known as
citizenship or sustainable responsible business
what is digital exclusion
an aspect of financial exclusion, the inability to take part in the computer based society
what is financial exclusion
the inability to get access to the most basic financial services and products
what is the banking reform act of 2013
legislation that introduced retail ring-fencing for banks and the cap on payday lenders
what is the financial services act of 2010
legislation that focuses on the need for banks to have a plan in place to deal with situations where they get into financial difficulty
what is the financial services act of 2012
the main act of parliament governing the regulation of the financial service industry
what does ftse stand for
financial time stock exchange index
what is the ftse 100
an index of the share price of the 100 companies with the highest market capitalisation listed on the london stock exchange
what is the ftse 100 also known as
the footsie
what is general data protection regulation
European union legislation, in the uk its provisions supersede those of the data protection act of 1998 the creation of the data protection act
when was the general data protection act implemented
25th may 2018
what is the help to buy scheme
a government backed initiative set up to help home hunters purchase a property with as little 5% deposit
what is loan forbearance
when a lender does not seek to repossess a property as soon as the borrower misses a few monthly payments, instead allowing the customer to stop paying or make a reduced payment for a set period
what is money laudnering
the process of making dirty money clean, making it look to be acquired legitimately
what is mortgage equity withdrawal
additional borrowing based on the difference between the value of the house and the outstanding mortgage
what is the national employment savings trust
a pension scheme run by a public organisation, which aims to ensure that the majority of workers are enrolled in an occupational pension
what is pestle analysis
a tool used to analyse how six key areas in the external environment might affect individual and corporate financial decisions
what is profit margin
the amount by which income from sales exceeds costs
what is social inclusion
ensuring all individuals and groups in society can benefit from certain rights and entitlements
What area of PESTLE analyses new delivery methods and new products
technological
Individuals are directly exposed to movements in the stock market if they have invested in what
shares
Prior to the financial crisis of 2007, the UK attracted international banks because it was seen to have a…
light touch approach to regulation
what is the role of the information commissioner
enforce the data protection act/UK general data protection regulation
what is a factor that could make a financial services product unsuitable for a particular client
age
who can complying with regulation be a barrier to
new providers entering the banking industry
what do standards of lending practice form
a voluntary banking code that covers the sale of credit excluding mortgages
what is the relationship between interest rates and business investment
when interest rates fall, business investment rises
what does it mean to lend responsibly
banks must ensure borrowers can show that their income is high enough to make mortgage payments as well as other bills
what is a feature of a social programme
must be balanced against a provider’s obligation to earn a good return for its shareholders or members
