GLOBAL FINANCE

November 15, 2023

Final Output: INTERNATIONAL BANKING SYSTEM OF A CHOSEN COUNTRY

Objectives: To obtain knowledge of the banking system of another country so as to compare and
contrast the banking operation to its home country.

Requirements:
I. Choose a Country (1) and study its own banking system with the following format:

- Profile of the Country

England is the origin of many well-known worldwide exports, including the English language,
the English law system (which served as the basis for the common law systems of many other
countries), association football (the world's most popular sport), and the Church of England; its
parliamentary system of government has been widely adopted by other nations.

The Bank of England (BoE) is the central bank of the United Kingdom and a model on which
most central banks around the world are built. Since its inception in 1694, the bank has changed
from being a private bank that loaned money to the government, to being the official central
bank of the United Kingdom. The bank started during a period of economic turbulence when the
national debt was growing at a steady rate. The Bank of England became the official central bank
of the UK in 1946. It is owned by the Treasury Solicitor, on behalf of the government.
Previously, it was the property of stockholders from its foundation.

The bank’s central offices are in London’s financial district, along Threadneedle Street. It is from
this street that the bank got the name “Old Lady of the Threadneedle Street,” a name derived
from the legendary Sarah Whitehead, who previously lived at the current location of the bank’s
headquarters.

- Banking System and its Operation

The banking system in England operates within the broader framework of the United Kingdom's
financial system.
The England banking system is a multifaceted network comprising key components such as the
central bank (Bank of England), commercial banks (e.g., Barclays, HSBC), regulatory bodies
(PRA, FCA), deposit insurance (FSCS), financial markets, clearing houses, and payment
systems. These elements collaborate to provide diverse financial services, ensure stability, and
regulate conduct in the industry. With a focus on technology, innovation, and international
connectivity, the system plays a pivotal role in supporting economic activities, managing risks,
and facilitating monetary policy under the supervision of regulatory authorities.
 - Similarities and Differences of Banking Operation to the Philippines

While both England and the Philippines have banking systems that serve similar purposes, there
are notable similarities and differences between their banking operations.
Similarities:

Central Banking Authority:

Both countries have a central bank responsible for monetary policy, currency
issuance, and overall financial stability. The Bank of England serves this role in
England, while the Bangko Sentral ng Pilipinas (BSP) fulfills this function in the
Philippines.
Commercial Banks:

Both nations have a network of commercial banks offering a range of financial

services such as savings and current accounts, loans, mortgages, and investment
products.
Regulatory Framework:

Both countries have regulatory bodies overseeing the banking sector. In England, the
Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) play
these roles, while the BSP performs regulatory functions in the Philippines.
Deposit Insurance:

Deposit insurance schemes are in place in both countries to protect depositors in the
event of a bank failure. In England, the Financial Services Compensation Scheme
(FSCS) provides this protection, while the Philippines has the Philippine Deposit
Insurance Corporation (PDIC).

Differences:

Economic Development:

England is part of a highly developed and advanced economy, whereas the

Philippines is classified as an emerging market. This difference influences the scale,
complexity, and sophistication of their respective banking systems.
Currency:

England uses the British Pound Sterling (GBP) as its official currency, while the
Philippines uses the Philippine Peso (PHP). Currency differences can impact
monetary policy and exchange rate dynamics.
International Financial Hub:
London, the capital of England, is a major global financial hub, hosting significant
international financial institutions and markets. The Philippines, while growing in
importance, does not have the same level of global financial influence.
Technology Adoption:

The level of technology adoption in banking may differ. England's banking sector is
often at the forefront of technological innovations, including digital banking and
fintech solutions. The Philippines may be at varying stages of technology adoption
across its banking institutions.
Financial Inclusion Challenges:

The Philippines may face more significant challenges related to financial inclusion, as
some regions may have limited access to banking services. In contrast, England,
being a highly developed country, generally has better banking infrastructure and
accessibility.
Foreign Exchange Market:

England, with London as a global financial center, has a more influential role in
international financial markets, including the foreign exchange market. The
Philippines has its own foreign exchange market but may not have the same global
impact.

In summary, both England and the Philippines share fundamental aspects in their
banking systems, such as central banking, commercial banking, and regulatory
frameworks. However, differences arise from variations in economic development,
currency, global financial influence, technology adoption, financial inclusion
challenges, and the role in international financial markets.

- Recommendation
Recommendations for the England banking system would depend on the specific
goals and challenges it faces at any given time.

Continued Embrace of Technology:

Encourage banks to further embrace technology and innovation to enhance
customer experience, increase operational efficiency, and stay competitive in the
rapidly evolving financial landscape.

Cybersecurity Measures:
Strengthen cybersecurity measures to protect against evolving threats. Given the
increasing digitization of financial services, robust cybersecurity practices are
critical to maintaining the integrity and security of the banking system.
Financial Inclusion Initiatives:
Promote initiatives that enhance financial inclusion, ensuring that a broader
segment of the population has access to banking services. This may involve
leveraging technology for inclusive banking solutions and expanding services to
underserved regions.

Risk Management Enhancements:

Continue to refine risk management practices within banks to address emerging
risks, including cyber risks, market volatility, and potential economic downturns.
Regular stress testing and scenario analysis can help identify vulnerabilities.

Collaboration with Fintech:

Encourage collaboration between traditional banks and fintech companies. This
can foster innovation, allowing banks to leverage new technologies and business
models while maintaining regulatory oversight and financial stability.

Green Banking Practices:

Explore and promote sustainable and environmentally friendly banking practices.
This may involve supporting green finance initiatives, incorporating
environmental considerations into risk assessments, and promoting sustainable
investments.

Customer Education and Protection:

Emphasize customer education to enhance financial literacy and protect
consumers. Clear communication about financial products, risks, and rights can
contribute to a more informed and empowered customer base.

Adaptation to Regulatory Changes:

Stay agile and adaptable to regulatory changes. Banks should continuously
monitor and adjust their operations to comply with evolving regulations, ensuring
a proactive approach to risk management and compliance.

International Cooperation:
Foster international cooperation and information sharing among regulatory
bodies. Given the global nature of financial markets, collaboration with
international counterparts can enhance regulatory effectiveness and contribute to
global financial stability.

Ethical Banking Practices:

Promote ethical banking practices, emphasizing transparency, accountability, and
responsible lending. This can enhance public trust in the banking sector and
contribute to long-term sustainability.
 It's essential to note that these recommendations are broad and may need to be
tailored based on the specific context and challenges faced by the England
banking system at any given time. Additionally, developments in the financial
industry may have occurred since my last update, so it's advisable to consider the
most recent information for a comprehensive understanding.

II. On a separate paper, answer the following question in your own upright words.

- Did you learn something from this subject?

Yes
- Describe my teaching styles, what are the things you Don’t like about me? Talk to
me

Your teaching style is characterized by a strong sense of structure and discipline. You
maintain high expectations for your students, fostering a focused and accountable
learning environment. This approach ensures that students are consistently challenged
and encouraged to achieve their full potential. While firm in your expectations, you
provide clear guidance and support, creating an atmosphere of respect and academic
excellence.
I don't have any issues with your teaching.

- What topic did you like the most? Why?

MOTIVES FOR WORLD
TRADE AND FOREIGN
INVESTMENT
This subject provides insights into the interconnectedness of nations, exploring
economic, cultural, and political factors that drive international business decisions.
The dynamic nature of global markets, the impact on economic development, and the
strategic considerations for businesses expanding globally add depth and relevance to
the topic. For those interested in business strategy, international affairs, and the ever-
evolving dynamics of the world economy, studying the motives behind world trade
and foreign investment is intellectually stimulating and socially impactful.
III. Deadline: December 4, 2023 – Monday @ 5 pm

Rubrics
Data Gathering and Presentation - 20
Data Analysis and Interpretation - 20
Timeliness - 10
TOTAL 50