The UK financial system is in a period of “very heightened tension and alertness” for further turmoil in the banking sector, Bank of England Governor Andrew Bailey has said.
The UK banking system remains in “a strong position” but the central bank has to be “very vigilant,” Bailey told the Treasury Committee in the House of Commons on Tuesday.
The central bank chief faced questioned from MPs amid global jitters following the collapse of Silicon Valley Bank (SVB) in the United States and the emergency rescue of Credit Suisse by Swiss authorities.
A security guard at the failed Silicon Valley Bank monitors a line of people outside the office in Santa Clara, Calif., on March 13, 2023. (Justin Sullivan/Getty Images)
There have been concerns that higher interest rates—following 11 consecutive rate hikes by the Bank of England—could be heaping pressure on lenders….