Ministry of Education and Science of the Kyrgyz Republic.

The Kyrgyz Aviation Institute named after Ishembay Abdraimov.

INDEPENDENT WORK

The theme: __________________________

Done by________________________________
Group________________
Checked by______________________________

Bishkek 2024
CONTENTS

Introduction……………………………………………………………………….3
1. History………………………………………………………………………….5
2. The City of London as a Financial Center……………………………………..7
3. The main branches of the City’s development………………………………...15
Conclusion………………………………………………………………………..18
Literature………………………………………………………………………... 19

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 INTRODUCTION

I chose this theme because I’m very interested in the history of London and
especially in the City of London. I’d like to search this theme in details.
The City of London is a small area within Greater London, England. It is the
historic core of London around which the modern conurbation grew and has held
city status since time immemorial. The City’s boundaries have remained almost
unchanged since the Middle Ages, and it is now only a tiny part of the metropolis
of London. It is often referred to as the City or the Square Mile, as it is just over
one square mile (1.12 mile² / 2.90 km²) in area. These terms are also often used as
metonymies for the United Kingdom's financial services industry, which has
historically been based here.
The City is today a major business and financial centre, ranking on a par
with New York City as the leading centre of global finance; in the 19th century,
the City served as the world's primary business centre. The City has a resident
population of approximately 8,000, but around 340,000 people work there, mainly
in the financial services sector. The legal profession form a major component of
the western side of the City, in and around the Inns of Court, of which two - the
Inner and Middle Temples - fall within the City of London boundary.
Britain is a major financial centre providing a wide range of specialised
services. The country's economy has for a long time been directed through the
great financial institutions which together are known as “The City”, capital “C”,
and which are mainly located in the famous “Square Mile” of the City of London.
The “Square Mile” in the Roman Times historically emerged on the Thames
as the business and industrial nucleus of the future London. Through centuries of
business and religious developments the City assumed its role of the world
commercial centre as it is known today . When in the 20th century Great Britain
lost its empire and other financial centres got established in the world, the city
adapted itself to changed circumstances to remain a world financial leader. The
City of London has the greatest concentration of banks in the world (responsible
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for about a quarter of total international bank lending) , the world' s biggest
insurance market (with about 1/5 of the international market ), a Stock Exchange
with a larger listing of securities than any other exchange, and it remains the
principal international centre for transactions in a large number of commodities. A
large proportion of Britain's wealth has been invested by the City overseas. The
City's annual foreign income roughly double that of the British manufacturing
industries. The above proves the City's world significance as a financial centre.
Geographically the City is a large office area bubbling with life at daytime and
comfortably quiet outside the office hours. It's historical sights like the Tower of
London, St Paul's Cathedral, the Museum of London, the Monument and others as
well as the beautifully impressive architecture of the office buildings attract
crowds of visitors. The only housing project, the Barbican, provides very
expensive accommodation along with an arts centre, a school and some official
premises.
Since after the mid - 80s financial and related services have started to
expand outside the “Square Mile” though the City of London remains the symbol
and actual reality of the country's power.

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 1. HISTORY

The City of London has been administered separately since 886, when
Alfred the Great appointed his son-in-law Earl Æthelred of Mercia as Governor of
London. Alfred made sure that there was suitable accommodation for merchants
from northwest Europe, which was then extended to traders from the Baltic and
Italy.
The City developed its own code of law for the mercantile classes,
developing such autonomy that Sir Laurence Gomme regarded the City as a
separate Kingdom making its own laws. The City was composed of wards
governed by Aldermen, who chaired the Wardmotes. There was a folkmoot for the
whole of the city held in the shadows of St Paul's Cathedral. In the tenth century,
Athelstan permitted eight mints to be established, compared with six in his capital,
Winchester, indicating the wealth of the city.
Following the Battle of Hastings, William the Conqueror marched on
London, to Southwark and failed to get across London Bridge or to defeat the
Londoners. He eventually crossed the River Thames at Wallingford, pillaging the
land as he went. Rather than continuing the war Edgar Ætheling, Edwin of Mercia
and Morcar of Northumbria surrendered at Berkhamsted. William rewarded
London in granting the citizens a charter in 1075; the City of London was one of
the few institutions where the English retained some authority.
William ensured against attack by building three castles nearby, to keep the
Londoners subdued:
- Tower of London
- Baynard's Castle
- Montfichet's Castle.
In 1132, Henry I recognized full County status for the City, and by 1141 the
whole body of the citizenry was considered to constitute a single community. This
'commune' was the origin of the City of London Corporation and the citizens
gained the right to appoint, with the king's consent, a Mayor in 1189 and to directly
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elect the Mayor from 1215.
The City was composed of wards governed by Aldermen, who chaired the
Wardmotes. There was a folkmoot for the whole of the city held at the outdoor
cross of St Paul's Cathedral. Many of the medieval positions and traditions
continue to the present day, demonstrating the unique institution which the City,
and its Corporation, is.
The City was burned severely on a number of occasions, the worst being in
1123 and then again (and more famously) in the Great Fire of London in 1666.
Both of these fires were referred to as the Great Fire. After the fire of 1666, a
number of plans were drawn up to remodel the City and its street pattern into a
renaissance-style city with planned urban blocks, squares and boulevards. These
plans were almost entirely not taken up, and the medieval street pattern re-emerged
almost intact.
The 18th century was a period of rapid growth for London, reflecting an
increasing national population, the early stirrings of the Industrial Revolution, and
London's role at the centre of the evolving British Empire. The urban area
expanded beyond the borders of the City of London, most notably during this
period towards the West End and Westminster.
In 1708 Christopher Wren's masterpiece, St. Paul's Cathedral, was
completed on his birthday. However, the first service had been held on 2
December 1697; more than 10 years earlier. This Cathedral replaced the original
St. Paul's which had been completely destroyed in the Great Fire of London and is
considered to be one of the finest in Britain and a fine example of Baroque
architecture.
Expansion continued and became more rapid by the beginning of the 19th
century, with London growing in all directions. To the East the Port of London
grew rapidly during the century, with the construction of many docks, needed as
the Thames at the City could not cope with the volume of trade. The arrival of the
railways and the Tube meant that London could expand over a much greater area.
By the mid-19th century, with London still rapidly expanding in population and
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area, the City had already become only a small part of the wider metropolis.
19th & 20th centuries.
An attempt was made in 1894 to amalgamate the City and the surrounding
County of London, but it did not succeed. The City of London therefore survived,
and does so to this day, despite its situation within the London conurbation and
numerous local government reforms. Regarding representation to Parliament, the
City elected four members to the unreformed House of Commons, which it
retained after the Reform Act 1832 and into the 20th century. Today it is included
wholly in the Cities of London and Westminster constituency, and statute requires
that it not be divided between two neighbouring areas.
The City's population fell rapidly in the 19th century and through most of the
20th century as people moved outwards to London's vast suburbs and many houses
were demolished to make way for modern office blocks. The largest residential
section of the City today is the Barbican Estate, constructed between 1965 and
1976. Here a major proportion of the City's population now live. The Museum of
London is located here, as are a number of other services provided by the
Corporation.

2. THE CITY OF LONDON AS A FINANCIAL CENTER, ITS MAIN

INSTITUTIONS

There has been a long tradition in Britain of directing the economy through
the great financial institutions together known as “the City”, which until 1997 were
located in the “Square Mile” of the City of London. This remains broadly the case
today, though the markets for financial and related services have grown and
diversified greatly.
Banks, insurance companies, the Stock Exchange, money markets,
commodity shipping and freight markets and other kinds of financial institutions
are concentrated in the solemn buildings of the City and beyond its borders. The
City of London is the largest financial center in Europe. London is also the world's
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largest international insurance market and has the biggest foreign exchange
market.
Britain's financial service industry gives about 6.5 % of its gross domestic
products (GDP) and contributes some 35 thousand million pounds a year. The
largest contributors are banks, insurance, institutions pension funds, and securities
dealers. To help Britain's financial services to respond to the competition and at the
same time to protect the public investment, the Government introduced 3 pieces of
legislation to supervise financing the industry: the Financial Services Act (1986),
the Building Societies Act (1986) and the Banking Act (1987). Under these acts
investment businesses need to be authorized and they have to obey rules set in the
legislation. The main responsibility to supervise were the Bank of England, the
Building Societies Commission, the Treasury and the Department of Trade and
Industry. The Serious Fraud office was set up to investigate and prosecute
significant and complex fraud.
The Bank of England.
The Bank of England was established in 1684 by Act of Parliament and
Royal Charter as a corporate body. Its entire capital stock was acquired by the
Government under the Bank of England Act in 1946. It is the heart of the City of
London and Britain's central bank. The Bank's main functions are to execute
monetary policy, to act as banker to the Government, to issue banknote and to
provide central Banking facilities.
Bank is responsible for the financial system as a whole; it is “lender of last
resort”. The Bank's main objective is to support the Government in achieving low
inflation. Unlike some other central banks the Bank can not act independently of
the Government. Decisions on changes in the interest rates are taken by the
Chancellor of Exchequer. The Bank's role is to advise the Chancellor and to carry
out his decisions. The 1999 (November) interest rate was 5.5%.
As banker to the Government the Bank of England is responsible for
managing the National Debt. It has the sole right in England and Wales to issue
banknote. The note issue is no longer backed by gold but the Government and
8
other securities. The Scottish and Northern Ireland Banks have limited rights to
issue notes and those must be fully covered by holdings of the Bank of England
notes. Coins can be provided by the Royal Mint.
The Bank of England can influence money market conditions through
discount houses. If on any day there is a shortage of cash in Banking system, the
bank relieves the shortage either by buying bills from the discount houses or
lending directly to them.
The Bank of England is responsible for supervision of the main wholesale
markets in London for money, foreign exchange or gold bullion.
On behalf of the Treasury the Bank manages the Exchange Equalization
Account (EEA). Using the resources of EEA the Bank may intervene in the foreign
exchange markets to check undue fluctuations in the exchange rate of sterling.
Discount Houses.
The Discount Houses are unique to the City of London (and to Britain as a
country). They occupy the central position in the British monetary system. They
act as intermediaries between the Bank of England and the rest of the banking
sector promoting an orderly flow of funds between the Government and the banks.
In return for acting as intermediaries the discount houses have privileged daily
access to the Bank of England as “lender of last resort”.
Banks.
Banks in Britain developed from the London gold miths of the 17th century.
By the 1920s and the 1930s there were five large clearing banks with a network
across the country. In February 1996 there were 539 institutions authorized under
the Banking. Act of 1987. In British banking retail banks should be described as
dominant.
Retail banks primarily serve personal customers and small to medium-sized
businesses. They operate through more than 11.350 branchers offering cash
deposits withdrawl facilities and systems for transferring funds. They provide
current accounts, deposit accounts various types of loan arrangements and a
growing range of financial services.
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 The main banks in England and Wales are Barklays, Lloyds, Midland,
National Westminter and the TSB group. The major Scottish banks are the Bank of
Scotland, Clydesdale and Royal Bank of Scotland.
With a relaxation of restrictions on competition among financial institutions
major banks have diversified the services they provide. They have lent more
money for house purchases, have more interests in leasing and factoring
companies, merchant banks, securities dealers, insurance and trust companies.
They provide low facilities to industrial companies ands now support a loan
guarantee scheme under which 70% of the value of loans to small companies is
guaranteed by the Government.
Plastic card technology has revolutionized cash transfer and payments
systems. There are around ninety two million plastic cards in circulation in Britain.
There are different types of cards but they often combine functions. Cards can be
used overseas too to obtain cash from bank ATM ( Automated Teller Machines).
Cash machine cards have greatly improved customers' access to cash. All retail
banks and building societies participate in nation wide networks of ATMs. About
two thirds of cash now is obtained through Britain's twenty one thousand
ATMs. .A lot of them are located different places at supermarkets, for instance.
Many banks offer electronic payment of cheques, telephone banking, under
which customers use a telephone to obtain account information, make transfers or
pay bills. Other innovations include computer-based banking (through home
computer) services over Internet and video links.
Merchant banks.
The traditional role of merchant banks was to accept bills of exchange, to
provide funds for trade and also to raise capital to British companies through the
issue of bonds and other securities. These activities continue, but the role of
Britain's merchant banks has diversified enormously in recent years. Although they
are called “banks” they are more involved in providing a range of professional
services, such as corporate finance and investment management, than in lending
money.
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 Building societies.
Building societies are mutual institutions owned by their savers and
borrowers. They have traditionally concentrated on housing finance, long-term
mortgage loans against property - most usually houses purchased for occupation.
Services have been extended into other areas, including banking, investment
services and insurance. The Societies are one of the main places were people
deposit their savings - around 60% of adults have a building society saving
accounts. Building societies offer a variety of accounts with interest rates related to
the time for which a saver is prepared to tie up his money. So they are major
lenders for house purchases. Four of the largest Societies are planning to become
banks. The largest Societies, the Halifax, Abbey National and Nationwide owe
45% of the total assets of the movement.
National Savings Bank.
The National Savings Bank is run by the department of National Savings. It
provides a system of depositing and withdrawing savings at twenty thousand post
offices around the country or by post. The National Savings Bank does not offer
lending facilities. Its deposits are used to finance the Governments public sector
needs.
Investing Institutions.
The investing institutions are those which collect savings and invest them
into securities market and other long-term assets. The main investment institutions
are insurance companies, pension funds, unit trusts and investment trusts. Together
they make a vast resource of funds which are invested in securities and other
assets. They own around 58% of British shares. The British insurance industry is
highly sophisticated and serves millions of policyholders in Britain and overseas.
Policyholders include governments, companies and individuals. The British
insurance is the forth largest in the world and in proportion to its GDP is the
highest in any country. There are 2 broad categories of insurance: long-term
insurance for many years, such as life insurance, permanent health (medical)
insurance; and general insurance for a year or less, which covers risks of damage,
11
such as loss of property, accidents and short-term health insurance. In 1995 there
were about 830 authorized to carry on insurance business in Britain. The industry
as a whole employs some 207.000 people, plus about 126.000 are employed in
activities related to insurance.
Lloyd's is an incorporated society of private insurers in London. Originally it
dealt with marine insurance. Today it deals with other classes of insurance, today it
deals with other classes of insurance. Long-term life and financial guarantee
business is not covered. Insurance brokers as intermediaries are a valuable part of
the insurance market. Lloyd's insurance brokers play an important role in the
Lloyd's market.
Institute of London Underwriters was formed in 1984 as an association for
marine underwriters. Today it provides a market where member insurance
companies transact marine, energy, commercial transport and aviation insurance
business. The Institute issues combined policies in its own name on risks which are
underwritten by member companies. About half of the 58 member companies are
branches or subsidiaries of overseas companies.
Pension Funds.
Pension Funds collect savings Pension Funds collect savings from
occupational pension schemes and personal pension schemes. Pension
contributions are invested through intermediaries in securities and other investment
markets. Pension fund have a become a major force in securities markets because
they hold about 28% of the securities listed on the London Stock Exchange. Total
Pension fund assets are very big. To protect them the Pensions Act was introduced
in 1995 to increase confidence in the security of the funds.
Specialized institutions.
The origin of the London Stock Exchange goes back to the coffee houses of
the 17th century, where those who those who wished to invest or raise money
bought and sold shares of joint-stock companies. Brokers later opened their own
subscription rooms and in 1773 this was named the Stock Exchange. During the
19th century the Stock Exchange developed as the demand for capitol grew with
12
Britain's Industrial Revolution. The Exchange also financed the construction of
railways, bridges and dams across the world. Today it is one of a number of highly
organized financial markets of the City. It provides trading platform and the means
of raising capital for British and foreign companies, Government securities,
eurobonds and depository receipts. Official list is the Exchanges main market,
while AIM, the Exchanges new market is for smaller rapidly growing companies.
It opened in 1995. Companies which apply for a listing on the Exchange must
provide a full picture of their operations, i9ncluding their financial record,
management and business prospects. If a company wants to join AIM the rules are
less strict. Such companies include multimedia and high technology business.
Today the Exchange has moved away from face-to-face dealing on the
trading floor to system of dealing from member firms' offices. The quotations are
displayed on electronic screen. Before 1986 only British companies were allowed
to operate. In 1986 deregulation, known as “the Big Bang” allowed any foreign
financial institution to participate in the London money market. Other changes
involved a system under which negotiated commissions were allowed instead of
fixed rates and dealers are permitted to trade in securities both as principals and as
agents. Traditional retail stockbrokers are facing growing competition from
operations running by large banks and building societies.
The Exchange has its administrative center in London, with regional offices
in Belfast, Birmingham, Glasgow, Leads and Manchester.
Many companies raise new capital on the London money market. The quiet-
edged market, that is the market of Government shares, allows the Government to
raise money by issuing stock through the Bank of England.
The Exchanges now going through a further period of change which has
been described as the most significant period since “The Big Bang”.
Money markets.
London's money markets channel wholesale short-term funds between
lenders and borrows. These operations are conducted by all the major banks and
financial institutions. The Bank of England regulates the market. There is no
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physical market place; negotiations are conducted mostly by telephone or through
automated dealing systems. The main financial instruments are CDs (Certificates
of Deposit), bills of exchange, Treasury and local authority bills and short-term
Government stocks.
Financial Futures and Traded Options.
Financial futures are legal contracts for the purchase or the sale of financial
products, on a specified future date at a price agreed in the present. Trading and
financial futures developed out of the numerous futures markets in commodities
which originate from London's position as a port and from Britain's need to import
food and raw material.
Options are contracts which give the right to buy or sell financial
instruments or physical commodities for a stated period at a predetermined price.
Financial futures and options are traded on the London International Futures
and Option Exchange (LIFFE) which was established in 1982..
Commodity Exchanges
Britain remains the principal international center for transactions in a large
number of commodities, though the consignments themselves never pass through
the ports of Britain. The need for close links with sources of finance, shipping and
insurance services often determines the locations of these markets in the City of
London. There are futures markets in cocoa, coffee, grains, rubber, sugar, pigmeat,
potatoes there.
Gas, oil for heating and petroleum are traded through the International
Petroleum Exchange, Europe's only energy futures exchange.
Copper, lead, zinc, nickel, aluminum, aluminum alloys and tin are treaded
through the London Metal Exchange (LME), the world's largest non-ferrous base
metals exchange.
The Baltic Exchange is the world's leading international shipping exchange.
It contributed to 292 Mln pounds in net overseas earnings to Britain's balance of
payments in 1995. Baltic dealers handle more than a half the world's bulk cargo,
transportation of oil, ore, coal and grain. All Britain's agricultural futures markets
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are operated from the Baltic Exchange and physical trading and commodities is
also carried out there.

3. THE MAIN BRANCHES OF THE CITY’S DEVELOPMENT

Economy.
The City houses the London Stock Exchange (shares and bonds), Lloyd's of
London (insurance) and the Bank of England. There are over 500 banks with
offices in the City, with established leads in areas such as Eurobonds, foreign
exchange markets, energy futures and global insurance. The Alternative
Investment Market has been a growth market over the past decade, allowing
London to also expand as an international equity centre for smaller firms.
Since 1991 Canary Wharf a few miles east of the City in Tower Hamlets,
has become a second centre for London's financial services industry and now
houses banks and other institutions formerly located in the Square Mile. However,
fears that the City would be damaged by this development appear to have been
unfounded with growth occurring in both locations. Canary Wharf may have been
of great service to the Square Mile by providing large floorplate office buildings at
a time when this was difficult within the City boundary, and therefore preventing
companies such as HSBC from relocating abroad. In 2008, the City of London
accounted for 4 percent of UK GDP.
Local government.
The City of London has a unique political status (sui generis), a legacy of its
uninterrupted integrity as a corporate city since the Anglo-Saxon period and its
singular relationship with the Crown. Historically its system of government was
not unusual, but it was not reformed by the Municipal Reform Act 1835 and little
changed by later reforms.
It is administered by the City of London Corporation, headed by the Lord
Mayor of London (not the same as the more recently created position of Mayor of
London). The City is a ceremonial county, although it has a Commission, headed
15
by the Lord Mayor, instead of a Lord-Lieutenant.
The City contains two independent enclaves (extra-parochial areas), Inner
Temple and Middle Temple. These form part of the City and ceremonial county,
but are not governed by the City of London Corporation. The Corporation governs
the rest of the City and is responsible for a number of functions and owns a number
of locations beyond the City's boundaries.
The City is made up of 25 wards which have recently had their boundaries
changed, though the number of wards and their names have not changed.
The City has a unique electoral system. Most of its voters are representatives
of businesses and other bodies that occupy premises in the City. Its ancient wards
have very unequal numbers of voters.
The City has its own independent police force, the City of London Police -
the Corporation is the police authority. The rest of Greater London is policed by
the Metropolitan Police Service, based at New Scotland Yard.
The City of London has one hospital, St Bartholomew's Hospital. Founded
in 1123 and commonly known as 'Barts', the hospital is at Smithfield, and is
undergoing a long-awaited regeneration after many doubts as to it continuing in
use during the 1990s.
The City is the third largest UK funding-patron of the arts. It oversees the
Barbican Centre and subsidises several important performing arts companies.
The Port of London's health authority is also the responsibility of the
Corporation, which includes the handling of imported cargo at London Heathrow
airport. The Corporation oversees the running of the Bridge House Trust, which
maintains five key bridges in central London, London Bridge, Blackfriars Bridge,
Southwark Bridge, Tower Bridge and the Millennium Bridge. The City's flag flies
over Tower Bridge, although neither footing is in the City.
The flag of the City of London.
The Latin motto of the City of London is "Domine dirige nos", which
translates as "Lord, guide us". The City has its own flag and coat of arms. The red
sword is commonly supposed to commemorate the killing of Peasants' Revolt
16
leader Wat Tyler by the Lord Mayor of London William Walworth in 1381, but in
fact is the symbol of the martyrdom of Saint Paul, London's patron saint.
Education.
The City has only one directly maintained primary school. Sir John Cass's
Foundation Primary School at Aldgate (ages 4 to 11). It is a Voluntary-Aided (VA)
Church of England school, maintained by the Education Service of the City of
London.
City residents may send their children to schools in neighbouring Local
Education Authorities, such as Islington, Tower Hamlets, Westminster and
Southwark.
The City controls three very well regarded independent schools, City of
London School (a boys school) and City of London School for Girls (girls) which
are in the City itself, and the City of London Freemen's School (co-educational day
and boarding) which is in Ashtead, Surrey. The City of London School for Girls
has its own preparatory department for entrance at age seven. It is also the
principal sponsor of the City of London Academy which is based in Southwark.
The City is also home to the renowned Cass Business School, the Guildhall
School of Music and Drama and parts of three of the universities in London: The
Maughan Library of King's College London's Strand Campus, and the business
school of London Metropolitan University. A third business school in the City is a
campus of the University of Chicago Graduate School of Business at Ropemaker
Place. The College of Law has its London campus in Moorgate.

17
 CONCLUSION
city london financial center
In conclusion, I would like to say, that the City has diversified away from
near exclusive office use in other ways. For example, several hotels and the City's
first department store have opened. A shopping mall is being built at New Change,
near St Paul's Cathedral. However, large sections of the City remain very quiet at
weekends, especially those areas in the eastern section of the City, and it is quite
common to find pubs and cafes closed on these days.
The trend for purely office development is beginning to reverse as the
Corporation encourages residential use, although the resident population is not
expected to exceed 10,000 people. Some of the extra accommodation is in small
pre-World War II listed buildings, which are not suitable for occupation by the
large companies which now provide much of the City's employment.
Central London is home to the headquarters of most of the UK's top 100
listed companies (the FTSE 100) and more than 100 of Europe's 500 largest.
London's influence in politics, finance, education, entertainment, media, fashion,
the arts and culture in general contributes to its global position. It is a major tourist
destination for both domestic and overseas visitors.
London has over 480 overseas banks, more than any other city in the world.
Due to its prominent global role, London's economy has been affected by the
global financial crisis of 2008–2009. The City of London estimates that 70,000
jobs in finance will be cut within a year.
More than half of the UK's top 100 listed companies (the FTSE 100) and
over 100 of Europe's 500 largest companies are headquartered in central London.
Over 70% of the FTSE 100 are located within London's metropolitan area, and
75% of Fortune 500 companies have offices in London.[136] The City of London
is home to the Bank of England, London Stock Exchange, and Lloyds of London
insurance market.

18
 LITERATURE

1. Кощеева Н.Е. English Reader Part II. English history. М. 1972.

2. Пинягин Ю.Н. Великобритания: история, культура, образ жизни. – Пермь:
Изд-во Перм. Ун-та, 1996. – 296.
3. Сотникова Н.М. City of London. Мн.: Выш. шк., 1997. – 255с.
4. Традиции, обычаи и привычки. М.: ИНФРА-М, 2001. – 127с.
5. London. 161 colour plates – map of the city centre. Thomas Benacci LTD.
London. 2007.
Размещено на Allbest.ru

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