This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-65099136
The article has changed 5 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Bank of England on heightened alert for further banking turmoil | Bank of England on heightened alert for further banking turmoil |
| (about 1 hour later) | |
| The Bank of England is on "heightened" alert for further turmoil in the banking sector, its governor has said. | The Bank of England is on "heightened" alert for further turmoil in the banking sector, its governor has said. |
| However, Andrew Bailey told MPs the recent problems facing lenders had not caused stress in the UK banking system. | However, Andrew Bailey told MPs the recent problems facing lenders had not caused stress in the UK banking system. |
| Officials have tried to calm investors since Silicon Valley Bank and Signature Bank failed, sparking concerns about the stability of other lenders. | Officials have tried to calm investors since Silicon Valley Bank and Signature Bank failed, sparking concerns about the stability of other lenders. |
| In Europe, worries over the strength of Swiss banking giant Credit Suisse led to a rushed takeover by rival UBS. | In Europe, worries over the strength of Swiss banking giant Credit Suisse led to a rushed takeover by rival UBS. |
| Nerves among investors have sparked sharp falls in banking shares around the world. | Nerves among investors have sparked sharp falls in banking shares around the world. |
| Mr Bailey told MPs on the Treasury Committee that the Bank of England would "go on being vigilant". | Mr Bailey told MPs on the Treasury Committee that the Bank of England would "go on being vigilant". |
| He said we were in a period of "very heightened, frankly, tension and alertness". | He said we were in a period of "very heightened, frankly, tension and alertness". |
| The collapse of Silicon Valley Bank (SVB) was the biggest US banking failure since the 2008 financial crisis, and left depositors struggling to get their money out. | The collapse of Silicon Valley Bank (SVB) was the biggest US banking failure since the 2008 financial crisis, and left depositors struggling to get their money out. |
| The collapse was linked to recent rises in interest rates which had hit the value of SVB's assets. | The collapse was linked to recent rises in interest rates which had hit the value of SVB's assets. |
| US regulators had to step in to protect customers, while the lender's UK arm was rescued by HSBC. | US regulators had to step in to protect customers, while the lender's UK arm was rescued by HSBC. |
| Failed lender Silicon Valley Bank bought by rival | Failed lender Silicon Valley Bank bought by rival |
| Bank shares hit as investor nerves return | Bank shares hit as investor nerves return |
| Banking officials admitted to MPs that the speed of the SVB's collapse had taken them by surprise and may mean that banking rules may need updating. | Banking officials admitted to MPs that the speed of the SVB's collapse had taken them by surprise and may mean that banking rules may need updating. |
| Mr Bailey said it was "the fastest collapse from health to death" since the UK's Barings Bank failed in 1995 after suffering heavy losses resulting from fraudulent investments. | |
| Sam Woods, the chief executive of the Prudential Regulation Authority, noted that SVB UK saw about a third of its deposits - £3bn - withdrawn on one day. | |
| He twice suggested to the MPs that the stress tests applied to UK banks to make sure they can withstand a crisis would need to be looked at, given how new technology meant deposits could be withdrawn electronically in seconds. | |
| However, Mr Bailey told MPs he did not think the UK was in a position similar to the 2008 global financial crisis, when banks stopped lending to each other, plunging the world into a deep recession. | |
| He added that while rising interest rates were "an issue" for US banks, they were less likely to affect UK lenders because they were regulated differently. | He added that while rising interest rates were "an issue" for US banks, they were less likely to affect UK lenders because they were regulated differently. |
| Related Topics | Related Topics |
| HSBC | HSBC |
| UK economy | UK economy |
| Bank of England | Bank of England |
| Andrew Bailey | Andrew Bailey |
| Banking | Banking |