The collapse of Silicon Valley Bank (SVB) was the fastest failure since Barings in 1995, the Bank of England governor has said.
Speaking to MPs at Parliament’s Treasury Committee, Andrew Bailey said that the economy was in a “period of very heightened tension and alertness”, but noted the UK banking system is not in the same position as during the 2008 financial crisis.
Mr Bailey was questioned after SVB collapsed in the US around two weeks ago, sending shockwaves across global financial markets.
The group’s UK arm was sold to HSBC in a rescue deal, while Swiss bank Credit Suisse was forced into an emergency sale to rival UBS less than a week later while global stock markets slumped.
Mr Bailey said on Tuesday: “In my past 30 years, talking about the parent bank in the US to start with, Silicon Valley Bank saw the fastest passage from health to death really since Barings.
“That was a Friday to Sunday thing and this was pretty similar.
“The US authorities are still dealing with some of the consequences of the issues and the issues with regional banks which we saw with SVB.
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