Bank of England says top UK banks no longer “too big to fail” -Breaking
LONDON (Reuters). The Bank of England stated Friday that it is satisfied Britain’s major banks can be closed down, without putting at danger the stability of the financial market or disrupting customers. However, it identified problems at three of its largest lenders.
According to the BoE, its initial public assessment on how lenders in distress could be restructured without government handouts revealed that six companies had been identified as needing “areas of further enhancement”.
The banks that were found to be lacking in their resolution plans included Lloyds (LON :), Standard Chartered, and HSBC. On Friday, the three banks made separate statements stating that they were working to improve their resolution plans.
The BoE will stop banks being too big to fail, potentially forcing taxpayers to bail them all out like in the global financial crisis of 2007-09.
Other lenders were also included in this review Barclays (LON :), NatWest (Nationwide, Nationwide), Santander, Nationwide (BME 🙂 UK, and Virgin Money UK (LON :).
The Bank of England stated that it would conduct a second assessment of the situation in 2024, and will review any progress made by lenders each two years.