Bank of England Governor Andrew Bailey has informed the Treasury Committee that the UK financial system remains in a “strong position,” although the bank must remain “very vigilant” amidst the current global financial climate. Bailey also spoke of the “heightened tension and alertness” in the UK’s banking sector following the collapse of Silicon Valley Bank (SVB) and the emergency rescue of Credit Suisse. On the topic of SVB’s collapse, Bailey stated that the UK banking system is in a stronger position than during the global financial crisis of 2007/8. U.S. Treasury Secretary Janet Yellen added that further action will be taken to protect bank depositors in the event of the collapse of smaller banks that threaten the country’s financial stability. Bailey agrees but added that balanced measures must be taken to ensure deposit guarantees do not become the standard.
BoE governor warns of high tension in UK banking system.
