Understand the UK financial services industry in its European and global context. Flashcards
What is the MPC?
Monetary Policy Committee
What is the RDC?
Regulatory Decisions Committee
What is the PRC?
Prudential Regulatory Committee
What is SCOFS?
Standing Committee on Financial Stability
What is the FPC?
Financial Policy Committee
What does ESA stand for and what are the 3 ESA’s?
ESA - European Supervisory Authority
- European Banking Authority (EBA)
- European Securities and Markets Authority (ESMA)
- European Insurance and Occupational Pensions Authority (EIOPA)
What is FATF?
Financial Action Task Force.
It concerns itself with worldwide global anti-money laundering and development.
Who are the PSR?
Payment Systems Regulator
What four essential functions are Financial Services said to perform?
- Provide access to, and protect, consumers’ savings
- Allows savings to be lent to others, to meet the borrowing needs of consumers
- Provide protection against risks, e.g. death and adverse health
- Disperse risk, by investment into many different products
What does GILTS stand for?
Government-invested, long-term savings
What is the other name for a government deficit?
Public-Sector net cash requirement (PSNCR)
What are the 2 key objectives the financial markets have developed to meet?
- Provide access to investments that can combat inflation (known as real growth)
- Provide a way for companies to raise money, other than borrowing from a bank
What are stocks?
They’re also known as ‘bonds’. This allows the investor to lend a company money, in exchange for a fixed interest payment.
What is the FSB?
The financial stability board. It concerns itself with the stability of the whole financial system.
What are the 4 key components of the UK financial sector?
Firms
Infrastructure
Regulatory Authorities
Markets
