ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

National Champions in the Financial Sector

To argue for development of national champions in the financial sector is not blind economic nationalism, nor is it protectionism or an alternative to competition. The authorities have to plan to develop and retain a few key institutions, but certainly it will serve no purpose if these institutions do not and are not enabled to come up to accepted international standards. Lessons from the story of the submission of the City, one-time symbol of British financial power and dominance.

October 27, 1986. Big Bang day in London stock exchange. It marked the beginning of competition in the conduct of trading in equity and securities, breaking down the barriers between merchant bankers, brokers and jobbers. Preparations for this major change started in July 1983 with the signing of an agreement between the ministry of trade and industry and the stock exchange.

In 1983 all the top 10 merchant bankers in UK were British-owned, today none are. The ambitions of large clearing banks and major merchant banks to own and operate investment banks on a global scale have received a death-blow. There are five pure American firms, two international firms with a strong American influence and three continental Europeans. Even Continental Europe, which scarcely had an equities culture till the other day, let alone an interest in investment banking, shot into the limelight. The City, the symbol of British power and dominance, stands completely humbled today.

Dear Reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here

Back to Top