Thursday, 20 August 2015

The Great British Bank Off

Britain’s banks and finance firms performed surprisingly well in the credit crunch and its aftermath because the industry is enormous, with good links to countries all around the world, according to analysis from leading academics. 
Despite the conventional view that the City of London and its banks became too big and too complex, the paper, written by Professor Dariusz Wójcik at the University of Oxford and Dr Daniel Haberley at the University of Sussex, argues that the size and scope of the UK finance sector made it more resilient than smaller rivals.
“Our results suggest that this surprising resilience may stem from the uniquely diversified global connections of the City, which has been able to pivot, in the wake of the crisis, away from Europe towards more robust American and Asian sources of funding.”
By contrast, countries which had large finance sectors as a proportion of their GDP but which were not diversified – such as Ireland, Cyprus and Iceland – have suffered more.
Strength through diversity, etc.

Another good performer was Singapore.  In fact, we could learn a lot from Singapore: a nation which trades on being the most sensible country in its region; a rule-of-law regime with strong property rights and lean public services.

Singapore also did well because it runs a government surplus when the going is good, so it had plenty of hard currency in reserve when the brown stuff hit the spinny thing.  I hear the food is excellent, too.

20 comments:

Sackerson said...

QE me and I guarantee to do well, too.

Steven_L said...

I'll fix this for you BE:

Britain’s banks and finance firms performed unsurprisingly well in the credit crunch and its aftermath because the industry is enormous, with big links to countries all around the world, according to analysis from leading academics.

Despite the conventional view that the City of London and its banks became too big and too complex, the paper, written by Professor Duh at the University of Common Sense, argues that the size and scope of the UK finance sector made it more likely to drag the rest of the world down with it than smaller rivals.

“Our results suggest that the massive bailouts may stem from the global systemic connections of the City, which has been able to tap, in the wake of the crisis, more robust sources of funding such as the trillions of dollars printed by the US Federal Reserve.”

By contrast, countries which had large finance sectors as a proportion of their GDP but which were not too big to fail – such as Ireland, Cyprus and Iceland – have suffered more.

andrew said...


Good food - you sold it to me

Jan said...

Oh the hubris.....we're resilient until we're not

hovis said...

Most of my expat friends who have made the move find Singapore sterile, dull and authoritarian.. The funny thing being as a whole the opinion seems to be is they prefer Communist China in the form of Hong Kong as a place to live and work being unkempt dirty, lively, diverse and generally having more soul - paradoxes eh?

Btw I am not suggesting we should be like China or HK

Blue Eyes said...

Singapore: independent yet authoritarian; HK under permanent threat from mainland China yet free-wheeling and crazy in the meantime. London: a nice middle road of day-to-day order but fairly free. Plus not as hot.

NB: there is plenty of good Asian food available in London, too.

dearieme said...

The worst Chinese meal I've ever had was at the airport in Singapore.

Blue Eyes said...

The worst baguette I ever ate was on the platform at Sunderland railway station.

SAM said...

Thank you for sharing your positive feedback with us!

Anonymous said...

Why not be like Greece. Just demand the cash then fold when the going gets rough and shaft the creditors.

Greece (II) along in a mo. Fully underwritten by Foldman Sox who HAVE checked the books.

Electro-Kevin said...

"The worst baguette I ever ate was on the platform at Sunderland railway station."

The worst sausage roll I ever had was at the M5 service station at Gordano. £5. I was hungry. When I questioned the price the counter assistant said "It's not a sausage roll. It's a BREAKFAST roll." (It was a sausage roll.)

Sackerson said...

EK: try the new Gloucester services, esp. the Cinderhill Farm Wild Boar sausage rolls (c. £3).

Elby the Beserk said...

Mr. Eyes.

Pale grey on a white background is to all intents and purposes illegible for those of us with old and/or poor eyes. Would you buy a book printed like that? More contrast please.

andrew said...


EK:
Go to Murrays in Clevedon (~10m from portishead), homemade sausage rolls ~£2.

Their pizza is even better.

Electro-Kevin said...

My point being that poor fayre isn't the preserve of the nationalised railway.

A revisit to the recent debate on obesity, if I may. I mentioned that the stigma to obesity (and many other things) has been removed.

Whenahweralad to be obese required a lot of individuality and guts ('scuse pun) People were merciless in their ribbing - and sometimes outright bullying. I'm not sure which is the crueller having seen both.

Blue Eyes said...

Mr Beserk, I would not buy a book with my blog posts in it.

Your comment is taken on board, though.

Blue Eyes said...

EK I wasn't suggesting that poor fayre is a fare-payers lot, I was gently mocking Dearieme's logic. Sunderland railway station is no more in France than Singapore airport is in China.

adham said...



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adham said...


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adham said...


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