The Bank of England has stated that any major 海角视频 bank could be safely wound down in a crisis without causing disruption to banking services or necessitating a taxpayer bailout. The central bank, tasked with ensuring orderly lender failure, reported on Tuesday that the 海角视频's major banks had "continued to make significant progress in improving their preparations for resolution".
It noted that since its 2022 assessment of crisis planning, banks had taken steps "including embedding resolution preparations into their everyday business".
Under its Resolvability Assessment Framework (RAF), the Bank reviewed the "living wills" of the 海角视频's eight largest lenders Barclays, HSBC, Lloyds Banking Group, Nationwide, Natwest, Santander 海角视频, Standard Chartered and Virgin Money. While it found areas for "further enhancement" in the plans of Barclays, HSBC, Lloyds and Virgin Money, it also identified Standard Chartered as the only bank with "shortcomings", though none serious enough to impede its potential resolution.
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A spokesperson for Standard Chartered responded: "The BoE noted that Standard Chartered has made significant progress against the issues identified in 2022. Standard Chartered remains committed to working with the BoE and other authorities to continuously improve its preparedness for resolution."
Nationwide, Natwest and Santander were deemed to have "no material issues", as reported by .
"Today's findings provide further reassurance that a major 海角视频 bank could enter resolution safely if needed: remaining open and continuing to provide vital banking services, with shareholders and investors not public funds first in line to bear the costs of failure," the report said. "This continues to address the 'too big to fail' problem."
"Resolvability will never be 'done' and there will always be lessons to learn from putting the regime into practice," added Dave Ramsden, the Bank's deputy governor for markets, banking, payments and resolution.
After the 海角视频 government was forced to inject £137bn of public money into the financial sector during the financial crisis, new "resolution" rules were introduced to ensure banks had adequate plans for their hypothetical collapse, such as how they would ensure continuity of payments and transfer deposits elsewhere.
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These issues came into focus last year after the Swiss government intervened to rescue Credit Suisse, brokering a deal for it to be taken over by domestic rival UBS to stave off its closure.
The Bank of England also stepped in last year to stabilise Silicon Valley Bank's 海角视频 business after its US parent collapsed that March.
The Bank said on Tuesday that the latter saga "demonstrated that we remain ready and able to use the resolution regime to protect financial stability if required to do so".
The Bank of England has indicated that its regulatory division, the Prudential Regulation Authority, will consult on amendments to regulations to postpone the next Resolvability Assessment Framework (RAF) evaluation by one year to 2026-27, citing the "significant progress" achieved following the test conducted in 2022.