12:01 PM, 14th June 2022, About 2 years ago 3
The Bank of England has published their assessment that out of the 8 major Banks in the UK sector there are none that are “too big to fail” and would need government support if they got into trouble again.
If a major UK bank failed today it could do so safely, remaining open and continuing to provide vital banking services to the economy with shareholders and investors, not taxpayers first in line to bear the costs.
The Banks individually assessed were: Barclays, HSBC, Lloyds Banking Group, Nationwide, NatWest, Santander UK, Standard Chartered and Virgin Money UK.
The Bank of England works with independent UK banks to ensure that if they do experience serious problems they can be dealt with safely minimising disruption to the UK economy – this is called resolution. Contingency planning for resolution does not mean these banks are likely to experience problems.
Dave Ramsden, Deputy Governor for Markets and Banking at the Bank of England said:
“The Resolvability Assessment Framework is a core part of the UK’s response to the global financial crisis, and demonstrates how the UK has overcome the problem of ‘too big to fail’. The UK authorities have developed a resolution regime that successfully reduces risks to depositors and the financial system and better protects the UK’s public funds. Safely resolving a large bank will always be a complex challenge so it’s important that both we and the major banks continue to prioritise work on this issue.”