Book contents
- Beyond Bad Apples
- Beyond Bad Apples
- Copyright page
- Contents
- Figures
- Contributors
- Acknowledgements
- Introduction
- Part I Risk Culture Conceptual Underpinnings
- Part II A View of Risk Culture Concepts in Firms and Society
- 5 The Changing Risk Culture of UK Banks
- 6 Regulating Agency Relationships and Risk Culture in Financial Institutions
- 7 What Does Risk Culture Mean to a Corporation?
- 8 Values at Risk
- Conclusion
- Index
- References
5 - The Changing Risk Culture of UK Banks
from Part II - A View of Risk Culture Concepts in Firms and Society
Published online by Cambridge University Press: 22 May 2020
Book contents
- Beyond Bad Apples
- Beyond Bad Apples
- Copyright page
- Contents
- Figures
- Contributors
- Acknowledgements
- Introduction
- Part I Risk Culture Conceptual Underpinnings
- Part II A View of Risk Culture Concepts in Firms and Society
- 5 The Changing Risk Culture of UK Banks
- 6 Regulating Agency Relationships and Risk Culture in Financial Institutions
- 7 What Does Risk Culture Mean to a Corporation?
- 8 Values at Risk
- Conclusion
- Index
- References
Summary
This chapter analyses the changing risk culture of UK clearing banks by charting the rise of more active asset and liability management. We focus particularly on the banks’ entry into the wholesale money markets and residential mortgage lending. The pattern of household property tenure changed significantly over the twentieth century. Before World War One less than a quarter of English households owned their homes. There was little demand for mortgages, and even less appetite on the part of bankers to supply them. By 2006, nearly three-quarters of English households were owner-occupiers with mortgages comprising two-thirds of clearing bank assets. The banks had transformed from conservative institutions that largely matched short-term retail deposits with short-term assets into real-estate lenders heavily reliant on wholesale funding. This asset-liability maturity mismatch was at the heart of the Global Financial Crisis. We conclude that the regulatory changes implemented in the wake of the Crisis have failed adequately to address this fundamental issue.
- Type
- Chapter
- Information
- Beyond Bad ApplesRisk Culture in Business, pp. 141 - 164Publisher: Cambridge University PressPrint publication year: 2020
References
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Other Sources
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The Economist
Financial Statistics
The Times