Government plans to tweak how small bank failures dealt with after SVB collapse
The Treasury said it could be in the ‘public interest’ to alter the rules to instil more confidence in the UK financial system.
The Treasury said it could be in the ‘public interest’ to alter the rules to instil more confidence in the UK financial system.
The bank posted pre-tax profits of 21.7 billion US dollars (£16.9 billion) for the first half of 2023, up from 8.4 billion US dollars (£6.6 billion).
HSBC bought SVB UK on March 13 for a nominal £1 after SVB failed in the US, sparking fears of a global financial crisis.
The banking giant resumed dividend payouts and announced up to two billion US dollars (£1.6 billion) in share buy-backs.
The British bank is strong and resilient in contrast, chairman Howard Davies told shareholders at its annual general meeting in Edinburgh.
Andrew Griffith told businesses that 2023 will be ‘the year of delivering the next generation of open banking’.
With some concerned that the current turmoil in the banking sector could lead to a repeat of the 2008 global financial crisis, Andy Sloan considers the potential impact on Guernsey.
Andrew Bailey also told MPs at Parliament’s Treasury Committee that the economy is in a ‘period of very heightened tension and alertness’.
Interest rates were lifted to 4.25% from 4% on Thursday.
The Bank of England insisted that the UK’s banking system is resilient but cautioned over its exposure to wider turmoil.
The emergency takeover of Credit Suisse has failed to quell the crisis of confidence in the global banking sector.
The filing from SVB Financial Group was widely expected, with much of the company now under the control of banking regulators.
Two events have fuelled the sense of panic over the banking sector this week.
The FTSE 100 top tier index dropped by close to 4% on Wednesday amid fears for European giant Credit Suisse.
The sell-off of banking stocks took a turn for the worse on Wednesday, leading to reports that some major shares had been temporarily suspended.