Finance

For about the last six months the financial system of UK has become stable, this report was given by the bank sector in UK. Through expansion of the banking sector in UK it would have several impacts on its economy.
    
The expansion of bank sector helps to control inflation in the economy. If the inflation in the economy rises then the bank sector raises their rates so as to slow spending and reduce inflation. Inflation does not only oppress the citizens but it reduces the amount of sales been experienced in the state. This is due to the fact that few people are willing to make purchases when the prices are high and are more likely to go without some of the essential goods in their life. For example, when the price of sugar goes up in the UK, the middle class people are more likely tom take sugarless tea or just take porridge that does not necessarily require sugar. With the expansion of banks, such issues are controlled and the citizens are able to make purchases regardless of their social status. Therefore, the expansion of banks in the UK in this case becomes sweet to the economy of the UK.

It helps bring down the cost of borrowing and this will make it easier for companies to raise capital which the can use to expand their businesses. Due to low cost of borrowing the households and businesses will be more willing to spend and therefore increasing the rate of employment and raising incomes. Due to the fact that the banking sector in the UK has been expanded, the citizens enjoy the advantage of increased rate of employment due to the banks. Once the rate of employment goes up, the economy of the country improves as there is a high rate of production all over the state. Since there are few people who are left jobless once the banking sector is expanded, the rate of crime also goes down. Such crimes are some of the great contributors to the reduction of the rate of economy growth. Therefore, with the expansion of the banking sector in the UK, people are guaranteed of more safety and hence business feel more secure due to the reduction of crimes that are brought by jobless people in the state.

The expansion of the bank sector in UK will create more employment in which will consequently improve the standards of living of people in the economy. With the improved living standards in the economy, it is a sure way of improving the economy of the state. This is due to the fact that there is an improved circulation of money in the state. This is an advantage to the economy of the state as banks enjoy increased rates of interests which are a major contribution to the economy of the country. In such cases the lives of the people is also improved. Therefore, the people become more enterprising as compared to those that have low living standards. This in return boosts the economy as the rate of production is high leading to a much stable economy.
    
Expanding the banking sector will also create a new source of revenue to the government. The government will charge tax on the banks. This will therefore assist the government in getting some of its finance that is used to pay the civil servants and also in the improvement of the infrastructure in the UK. It also helps in improving the economy of the state as the prices of goods and services is much lower when the government has adequate revenues in its accounts. The citizens are therefore also favored with the expansion of the banking sector in the state as they are able to purchase some of the most essential goods and services in the state at a considerably much lower price. This will in turn increase the rate at which the money circulates in the economy bringing even more revenue to the government due to the rise in the number of goods and services being taxed.
   
When the banking sector in the UK expands, its also sweet to the economy as people willing to start businesses are more assured of getting starting capital due to the many banks spread all over the state. With the expansion in the banking sector, every bank seeks to be the on the top of the other banks. This therefore makes them provide a more picket friendly service to the customers. The rates at which they charge interests to the loans provided are also low so as to attract more customers to their bank. This therefore becomes an advantage to the economy of the UK as many people are able to set up banks that facilitate the circulation of money in the economy. Moreover, the more the businesses established in the state, the more the government gets its revenue due to the taxation got from the many businesses on the rise as well as the increased number of the banking sector.
   
Another merit of the expansion of the banking sector to the economy is the reduction in monopoly in UK. When there is low or no expansion in the baking sector of the UK, the few available banks are more likely to take control of the financial position of the state. This means that the available banks are more likely to have high rates in their services which may be oppressive to the citizens. This will consequently reduce the rate of money circulation in the economy. The government does not also get many revenues when there are only few banks in the UK and this brings down the economy of the same. When there is expansion in the banking sector, there is monopoly and therefore the citizens are not oppressed by the already existing banks.  They can therefore use the services being provided by the banking sectors more effectively without being subdues to increased banking rates. Some of these rates are great hindrances to the growth of the economy since only the few rich people re willing to use the service being provided by the baking sectors.

The expansion of the banking sector is also sweet to the economy as it favors all social levels of people in the UK. This means that everyone in the state is in a position to choose a bank that suits him most regarding the amount of money heshe earns. Unlike in the past when the banking sector was regarded as a service for the well up people in the society, this notion has changed with time. Currently, even the small scale farmers in the UK can open and run a bank account comfortably. This has been attributed by the reduction in the accounts opening balances as well as the money used to run the accounts. Since there are various accounts from which one can chose from, one is in a position to make the decision in relation to hisher income. With the expansion of the banking sector, the people can enjoy the benefit of opening various accounts with diverse banks without necessarily having to incur high rates of taxation that is incurred in running the account. This is an advantage to the economy as the more people open bank accounts, the more the government is able to get its taxes. The rate of employment in the banking sector is also high as there are quite a number of people that are needed to ensure that the banking sector in the UK runs smoothly. These include people from the grassroots who go about and meet their potential customers as well as those that have already opened bank accounts with them. They educate them on the various merits of opening bank accounts. They therefore act as advertising agents whereby they meet the customers face to face and are in a position to answer any question that the customer feels disturbing. Through this form of advertising, various careers get an opportunity to have chances in the banking sector.

Another advantage of expanding the banking sector to the economy of the UK is the fact that people have access to their money all over the state at any given time. These banking sectors have introduced ATMs all over the sate whereby they are at the reach of all the citizens in the UK. This is a great contribution to the economy of the country as the citizens can withdraw money from the banking machines without necessarily involving a cashier. This is due to the fact that the ATM machines are located in places where its not necessarily that there is a bank. The economy of the state is improved due to the fact that since people can have their money at any time they intend, its a sure way of continued production in the UK as one does not have to wait for the banks to open so that heshe can commence in his work.

The expansion of the banking sector also has the merit of increase security to the economy of the UK. Many of the banks perform various financial matters together. This means that a bank can save its money in another bank or still they can borrow from each other. This strategy is used to ensure security to the customers. When one bank goes trough a financial hardship leading to its breakdown, its customers can still be compensated by the other banks without any problem. This is helpful to the economy of the state as customers will be assured of security and will be much willing to use the bank services a they are guaranteed that they will get their money back in case a bank collapses. This in return facilitates the growth in the economy as there is more money in circulation and the government is able to get it revenues from the same.

With the expansion in the banking there has been a need to come up with learning institutions that specialize in banking. Such institutions in the UK come up due to the many banking sectors being set up in the region raising the need of getting professionals in that field. The students are also well assured that they will get employment due to the many banking sectors in the region. The specialization of such institutions is also helpful towards the growth of the economy as there are competent people who are on training.            

Once these people are employed in the banking sector, they are able to run the same more effectively. They are in the position of making contributions to the government regarding what should be done to raise the economy of the state. These professionals are also in the position of providing useful information to any person who is willing to start a business and does not have the required knowledge about how heshe should go about the same. In such instances, they are helpful to the customers as the advice them on whether they should take loans or not. From this the customer is n a position to make a decision of whether he should take the loan or not. This consequently reduces the risks that the customer may incur by taking the loan. The professionals are also in the position to convince the customer to take a loan. When they know that the he has a good business idea and will be in a position to repay it back comfortably. This is sweet to the economy indirectly as it increases the rate in rise of stable businesses that are at lower risks of collapsing. The government is therefore in a position to acquire adequate and stable funds from these firms and businesses.

With the expansion of the banking sectors in the UK, the government also benefits from the same. Various ministries in the in UK are in the position of choosing the banking sector that they feel best suits them. By so doing, the government is able to pool risk whereby the collapse of one or more bank cannot affect the financial stability of the bank. The government is therefore guaranteed of security in its finances as they are distributed in various baking sectors in the region. This is a great facilitator to the improved economy since the government has secured all its funds in different banking sectors and therefore they are charged less money in operating the accounts.

The government is also in the position to acquire financial advice from the various banking sectors that are al over the UK. The government can therefore chose the best advice as given by the experts from the various banking sectors. Such banking sectors are also helpful to the government as they assist in providing the government with financial aid at times when there is an emergency and there are not sufficient funds in the accounts.  The banking sectors are as in the positions to give advice to various institutions regarding their financial positions. They can also fund them at emergency times and therefore they do not risk losing their profits. This means that the many the baking sectors in the UK, the more the economy is stable as there is a challenge of continuity in all institutions due to the urgent loans given to them when need arises.

In conclusion, as indicated above, the expansion of the banking sector is not toxic but sweet to the economy of the UK. This is evident that the government and the citizens are the greatest beneficiaries of the expansion of the banks and since they compose the entire population of every country, the move should be encouraged.