has the uk financial system become too large for the smooth functioning of the uk economy?? discuss

The UK Financial System

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The UK Financial System

The financial system of the United Kingdom is one of the most complicated in the entire world . A financial system refers to institutions mainly concerned with money transactions between the lenders and the borrowers . For this to happen , each financial system is composed of a variety of markets , financial institutions , money transactions and other instruments that are necessary in the lending and borrowing function . The modern economy critically requires a financial system

to aid in the allocation of resources . In every economy financial systems play crucial roles in the enabling of transactions from the household level to the corporate sector . In the United Kingdom the financial institutions are concerned with the allocation of investment funds amongst different companies . Further still , the financial institutions allow expenditures and consumptions of firms and even households . Through a stable financial system , firms and households are able to share risks . Despite the fact that all the functions of financial systems are similar , their form in various economies varies

There has been an argument of whether the size of a financial system affects the smooth running of an economy . Many economists in the United Kingdom have suggested that its financial system has become too large for the smooth running of the economy . This is just an opinion . To some point it is true , but at the same time , there is never too much of a something

UK 's financial system is among...