| EU banks hold the largest share of 56% of the total | | | | commercial banks by introducing the transfer of a |
| global banking system, survey report of 2008/2009. | | | | building society into an investor-owned commercial |
| The UK banking system has witnessed a substantial | | | | company. |
| growth and change in recent years and its total assets | | | | Loans mean that money can flow to where it is going |
| have expanded rapidly since 1990. By accepting | | | | to do the most good. Though Building Society banks |
| deposits and then loaning out money, banks are an | | | | are providing loans to its customers however A |
| integral part of the financial system because they | | | | Mortgage bank specializes in originating or servicing |
| essentially create money. UK banks make significant | | | | mortgage loans to its customers and mortgage |
| contributions to the economy of UK. It has witnessed a | | | | bankers can be very competitive in mortgage lending |
| substantial growth and change in recent years and its | | | | as they specialize in only lending. |
| total assets have expanded rapidly since 1990. | | | | In the past, commercial banks have not been greatly |
| Traditionally the banking sector was dominated by the | | | | interested in real estate loans and placed only a small |
| big four banks, Barclays, Lloyds and NatWest. Now | | | | percentage of their assets in mortgages. Thus the |
| the banking system of UK has expanded and has | | | | banking services provided to the communities was |
| provided vast services to its customers. | | | | very low as it provided minimal benefits to its |
| Despite the substantial structural changes and the | | | | customers. However, due to changes in banking laws |
| significant increase of competition in the UK financial | | | | and policies, commercial banks are now increasingly |
| services sector in recent years, the UK banking sector | | | | active in home financing. Changes in banking laws |
| remains relatively stable. Following the UK Building | | | | have allowed commercial banks to make home |
| Societies Act 1986 a number of building societies | | | | mortgage loans on a more liberal basis than ever |
| converted into banks, especially between 1994 and | | | | before. Now the modern commercial banks in UK do |
| 1997. A building society is a financial institution which | | | | investing, lending, brokerage, real estate, borrowing, |
| offers banking and other financial services, especially | | | | advisory and many functions on a cosmic scale and in |
| mortgage lending, to its members. This act opened the | | | | a very systematic manner giving the common people |
| way for competition between building societies and | | | | greater prospects in the community. |