UK BANKING SYSTEM EXPLAINED: Today, and certainly since the rules’ amendments at the end of 2013, the banks and the banking system have changed – by law!
This could all prove to be a potential problem, since the same people still run them at high street level and at the boardroom level.
It may take them time to ‘adapt’ to the changing face of the UK financial institutions. Creating an economic powerhouse is a slow process.
In fact, if they do not follow the UK rules, those responsible could actually face criminal charges.
In the past, banks on the high street accepted your money – by way of savings. Your money was ‘safe’ and earned a little interest each year.
Or, you may have been one of many people who borrowed money and paid it back bit by bit – with bank interest charges!
There are many expert written accounts of how banks make money. Selling their services like loan protection and insurance are two traditional examples. There are many more.
Modern High Street Banks and Bankers
Few people are keen on financial establishments and even less befriend bankers. All money earned by businesses ended up at the banks.
It got there as a result of paying in the day’s cash takings or by depositing the cheques they had received.
An exception occurs if the business is an illegal set-up. In this instance, depositing money is usually bypassed!
Internet banking and electronic funds transfer are a great way to manage your cash. Of course, to do so you need to able and computer literate.
Yet, that is not always the case. So many people have ended up without a convenient means to manage their own cash or finances.
Cash does not change hands too much these days in ‘legal’ transactions. In fact, some establishments are now prohibited by law to take cash above certain amounts.
Banks have been closing at a rate of knots on the high street level over the last ten years. But, the contemporary rules and regulations of banking could mean many will soon re-open.