Financial Services

Britain is a major financial centre, home to some of the world's most prestigious banking, insurance, securities, shipping, commodities, futures, and other financial services and markets. Banking, finance, insurance, business services and leasing contributed around 20 per cent of total output in 1993.

Financial institutions' net overseas earnings amounted to ₤15,600 million in 1993. Banking, finance and insurance accounted for 13 per cent of employment in Great Britain in 1994.

Historically the financial services industry has been located in the 'Square Mile' in the City of London. This remains broadly the case, even though markets for financial and related services have grown and diversified greatly. Manchester, Cardiff, Liverpool, Leeds, Edinburg and Glasgow are also financial centres. The 'City', the collection of markets and institutional around the Square Mile, is noted for having:

· the greatest concentration of foreign banks - 286 - in the world;

· a banking sector that accounts for about 20 per cent of total international bank leading;

· one of the world's biggest international insurance markets, handling about 20 per cent of general insurance business placed on the international market;

· the largest centre in the world for trading overseas equities;

· the world's largest foreign exchange market, with an average daily turnover of about US$300,000 million;

· one of the world's most important financial derivatives markets;

· the greatest concentration of international bond dealers;

· important markets for transactions in commodities; and

· a full range of ancillary and support services - legal, accountancy and management consultancy - contributing to London's strength as a financial centre.