UK Treasury plans reforms to manage small bank failures after SVB collapse

Enhancements to resolution regime

Valeria Martinez
clock • 2 min read

The Treasury has outlined a new mechanism to enhance the UK’s resolution regime, which aims to manage the failure of small banks more effectively and limit risks to public funds.

The consultation, published today (11 January), comes nearly a year after the collapse of Silicon Valley Bank, when HSBC stepped in to buy the bank's UK subsidiary for £1 in March 2023. Under the proposals, a new mechanism would be introduced to facilitate the use of certain existing stabilisation powers to manage the failure of small banks, to shift the responsibility for certain associated costs from the taxpayer to the industry.  The government said it may be in the public interest to transfer a failing small bank into a ‘Bridge Bank', or as happened in the case of SVB UK, to a wil...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Regulation

MainStreet Partners launches SDR due diligence tool for fund buyers

MainStreet Partners launches SDR due diligence tool for fund buyers

Ahead of SDR implementation in July

clock 14 June 2024 • 2 min read
Square Mile revises 3D investing methodology amid incoming SDR labels

Square Mile revises 3D investing methodology amid incoming SDR labels

Four categories of classification

clock 14 June 2024 • 2 min read
FCA to approve listings regime overhaul as early as this month - reports

FCA to approve listings regime overhaul as early as this month - reports

Possible announcement after the election

Valeria Martinez
clock 10 June 2024 • 1 min read
Trustpilot