Abstract
The systemic banking crisis in 2008 led to the quasi-nationalisation of two UK listed banks: The Royal Bank of Scotland and Lloyds Banking Group (National Audit Office, 2010). Using property rights and agency theory as the theoretical frameworks, this paper analyses whether the quasi-nationalisation of these banks has been successful. It is argued that as a rescue mechanism, quasi-nationalisation was a positive development. However, questions arise over its effect as an instrument of banking reform. The State's arm's length approach to management represents a lost opportunity to change the culture of profitability over people that contributed to the banking crisis.
Original language | English |
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Pages (from-to) | 463-481 |
Journal | Financial Accountability and Management |
Volume | 31 |
Early online date | 16 Sep 2015 |
DOIs | |
Publication status | Published - Nov 2015 |
Keywords
- quasi- nationalisation;
- banks
- property rights
- agency theory
- UK