Quasi-nationalisation in the UK banking crisis: A problematic policy option

Elisa Henderson

Research output: Contribution to journalArticlepeer-review


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 languageEnglish
Pages (from-to)463-481
JournalFinancial Accountability and Management
Early online date16 Sep 2015
Publication statusPublished - Nov 2015


  • quasi- nationalisation;
  • banks
  • property rights
  • agency theory
  • UK


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