THE country is not facing another big financial crisis, the governor of the Bank of England reckons.
Andrew Bailey spoke out after the International Monetary Fund’s gloomy outlook for the economy.
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He insisted: “I do not believe we face a systemic banking crisis.
“When I look at UK banks, they are well capitalised, liquid and able to serve customers and support the economy.”
Mr Bailey told an event in Washington DC that reforms put in place after the 2003 global financial crisis, including ensuring banks had enough capital buffers, “have worked”.
However, the Bank of England governor warned that the current stress tests and protections might not be right in the future or to safeguard against unpredictable events, as proven in last year’s pension fund chaos.
Mr Bailey said the rapid unravelling of US lender Silicon Valley Bank showed that bank runs in the digital age were happening faster than ever before.
Customers of the bank withdrew $42 billion in a single day as fear about the bank’s health spread on WhatsApp and Twitter.
