This text aims to provide a detailed explanation of the workings of the UK financial system. It details both the institutional structure and the economic theory behind the financial system, and discusses the extensive changes brought about by the single European market of 1992. The book is suitable for secnd and third year students of accountancy, business studies, economics and finance. The first six chapters deal with the British financial institutions; the next seven deal with the different financial markets located in the UK; and the remaining ones cover a number of issues such as the management of risk, the development of a single European market in financial services and the regulation of the UK financial system.