ABSTRACT
The chapter is divided into two parts and starts with the history of the major institutions in the financial landscape. The size, age and importance of British financial institutions have allowed many the luxury of retaining important archival material which, together with some sponsorship, has made possible a significant business and banking history literature, with many financial institutions and most financial industries having at least one published history from inception to the present day. In addition to these narratives, researchers have questioned why the British financial sector (in particular ‘the City’) has proved such a success, whereas key elements of British industry failed to make the transition from the heady days of world trade domination in the mid-nineteenth century to the managerial capitalism of the twentieth century. Much research has been devoted to the thorny question of whether British financial institutions were to blame, with the finger pointing both at the banks – for not lending long term – and at the stock market – for preferring to finance overseas investments rather than the home-grown variety.
