Free Trial

MNI BRIEF: No UK Bank Now 'Too Big To Fail', BOE Says

(MNI) London
(MNI) London

No UK bank is now 'too big to fail,' with all of them able to keep running core businesses in the event of financial distress without the state bailing them out, the Bank of England said Friday in its first public assessment.

Since the state rescue of key banks in 2008, the BOE has been working on the 'too big to fail' problem and its resolution regime tests found that there would be no 'deficiencies' or 'substantial impediments' to resolution, with shareholders and investors taking the financial hit and banks still able to support the economy.

The BOE will publish updates every two years from now on, but its message is that with higher capital ratios and detailed 'living wills' it does not believe a re-run of the 2008 crash would occur in any plausible financial shock.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
True
MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.