This paper was prepared by the FSAP mission team as part of the background work for the U.K. FSAP in the summer-fall of 2002. The primary contributor to this paper was Mark Zelmer of the IMF’s Monetary and Financial Systems Department.
See the article by Stephen Senior and Robert Westwood in the Winter 2001 Bank of England Quarterly Bulletin on the U.K.’s external balance sheet.
For example, see the 1996 International Capital Markets Report published by the IMF.
Some exceptions include Deutsche Bank, which is actively involved in lending to the property market, and Citibank, which operates a small retail banking network. However, it is not clear that such activities are linked to the fact that London is a center for trading in global markets.
The financial sector definition here incorporates banking, insurance, fund management, securities, derivatives, and venture capital. The contribution to the GDP reaches 8 percent if a broader definition including professional and support services related to the sector is used.
The settlement of foreign exchange market transactions changed somewhat with the introduction of continuous-linked net settlement later in 2002.