The paper examines the banking system over the last two years, since the first signs of the economic crisis became apparent with the collapse of Northern Rock. The paper will be in four main parts. Part one will consider briefly the economic crisis being experienced in the UK from 2007 to present. It will examine the collapse of Northern Rock and the regulatory interplay and causal actions between the USA and the UK. The second part of the paper will consider the main regulatory documentations that have been published during the economic crisis. The third part of the paper considers the impact the economic crisis has had on the banks banking organisations within the UK. The paper looks at the following banking institutions: HBOS, Lloyds, and RBS in terms of the crisis. Finally, the paper will consider what the future could hold for the banking system once it has recovered from the economic crisis.
Keywords: banking crisis, regulatory reaction, economic crisis, UK banks, Northern Rock, bank failures, UK