This text provides a broad framework for understanding the UK financial system within which the major financial institutions and markets are described and analysed. The emphasis is on the institutions and markets as dynamic entities which react to their environment, the major elements of which are market structure, competition and regulation. The text is up-to-date and devotes discussion to recent developments including the approach to 1992 and European harmonization, the problems of financial conglomeration, insider dealing, market efficiency and financial innovation. This book should prove of interest to second and third year undergraduate students doing courses on financial services, accounting, business studies, banking and economics. It may also prove of interest to students of BTEC and HND/HNC courses in accountancy and finance as well as business studies and professional courses.