The Bank of England is considering a major overhaul of its deposit guarantee scheme, including boosting the amount covered for businesses and forcing banks to pre-fund the system to a greater extent to ensure faster access to cash when a lender collapses, The Financial Times reported on Sunday.
The UK’s Financial Services Compensation Scheme is being urgently reviewed after the rapid failure of Silicon Valley Bank last month, the FT added citing people briefed on the matter.The failure last month of Silicon Valley Bank and two other lenders in the United States, along with the forced takeover of Credit Suisse by UBS sent banking shares globally into a tailspin, but markets have since calmed.
BoE Governor Andrew Bailey said last week that the British central bank was considering improvements to its approach to depositor pay-outs for smaller banks with a focus on the speed of the pay-outs. "Going further and considering increasing deposit protection limits could have cost implications for the banking sector as a whole," Bailey said on Wednesday in Washington where he was attending meetings of the International Monetary Fund. "As with all things relating to bank resolution, there is no free lunch."
The heightened concerns about the safety of banks globally have raised questions about how far authorities should go to shore up the sector if needed, particularly regional lenders in the United States. The FT, quoting its sources, said regulators were worried the UK guarantee’s 85,000-pound limit covered only about two-thirds of deposits and that the relatively low level of pre-funding meant delays of at least a week for customers to regain access to their cash.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of England's Tenreyro says patience needed to lower inflationBank of England policymaker Silvana Tenreyro said past interest rate rises would take time to bear down on inflation, and that it was important not to over-adjust policy while the impact of these past rate rises was feeding through.
Read more »
Bank of England considering urgent reform of deposit guarantee schemeThe Financial Times reported on Sunday that the Bank of England is considering a major overhaul of its deposit guarantee scheme, including boosting th
Read more »
Elon Musk plans AI startup to rival OpenAI, Financial Times reportsBillionaire Elon Musk is working on launching an artificial intelligence start-up that will rival ChatGPT-maker OpenAI, the Financial Times reported on Friday citing people familiar with his plans.
Read more »
US regulator calls for greater scrutiny of hedge funds after bond turmoil, Financial Times reportsGary Gensler, the chair of the U.S. Securities and Exchange Commission, said that hedge funds and other parts of the shadow banking system need to face greater scrutiny after last month's upheaval in U.S. government bonds, the Financial Times reported on Saturday.
Read more »
Trump files personal financial disclosure report | CNN PoliticsFormer President Donald Trump on Friday filed his personal financial disclosure report with the Federal Election Commission -- offering the public a first look at his post-presidential finances.
Read more »
Trump details business holdings in belated financial disclosureFormer president Donald Trump filed his first personal financial disclosure since leaving the White House, offering insight into his post-presidency earnings, including from a company that sold digital trading cards of him.
Read more »