The Global Financial Industry

The finance industry offers a range of services from various organisations that deal with the management of money. These organisations include banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds, and some government-sponsored enterprises. In 2004, a report noted that the US financial industry represented 20 percent of market capitalisation in the S&P 500, the most widely followed index of large-cap American stocks.

Financial services offered by banks may help businesses raise money from other firms in the form of bonds or stocks, which are otherwise known as debt and equity. Banking services provide personal loans, commercial loans and mortgage loans, which are loans to purchase a home, business or property. There are also a lot of services offered, including the issuance of credit cards, debit cards, issuance of chequebooks, and many more. Meanwhile, other types of bank services would include private banking services, capital market bank services, bank cards, credit card machine services and networks.

Foreign exchange services, investment services, insurance and other financial services are also offered by these financial institutions. Speaking of financial services, the UK is considered both the leading global financial services centre and the single most internationally focused financial marketplace in the world. It has an unrivalled concentration of capital and capabilities, which means that more overseas financial institutions and investors choose to do business in the country compared to any other locations. According to sources, its financial services industry has an outstanding track record with a wealth experience and established institutions that enabled its success.

In addition, the share of global markets in the UK speaks volumes in 2007 alone. This has accounted for 20 percent of cross-border bank lending, 34 percent of derivatives turnover, 53 percent of foreign equities turnover and a massive 70 percent of the global bond trading, which is the world’s largest share.

The Global Financial Industry

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