ABSTRACT
The British system is one of the least regulated systems in the developed countries. However, the high level of concentration in the banking industry and the historical influence of the Bank of England in the London money markets mean that it is in fact a quite tightly controlled system. Acting through the twelve discount houses and the clearing banks the Bank of England is able to assert its will to a considerable extent. On the other hand, the authorities have always recognised the legitimate freedoms of commercial banks and positively encouraged the actvities of UK and foreign banks in London, whether operating in domestic or international markets.
