Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Most banks need "quick fixes" for any sub-zero rates, says BoE

Published 04/02/2021, 13:02
Updated 04/02/2021, 13:15
© Reuters. FILE PHOTO: FILE PHOTO: AA view of The Bank of England and the City of London financial district in London, Britain

LONDON (Reuters) - Even "quick fixes" to bank systems would take at least six months to be ready to implement any sub-zero interest rates, the Bank of England's top banking supervisor said on Thursday.

The BoE's Prudential (LON:PRU) Regulation Authority, headed by BoE Deputy Governor Sam Woods, asked banks how much time they would need to get ready to implement any negative rates.

Woods said in a letter to heads of lenders published on Thursday that a majority of firms said would need to make some changes to systems and processes to implement permanent changes or tactical or short-term workarounds.

"On the basis of firms' responses to this exercise, the PRA understands that the majority of firms would be able to implement tactical solutions to accommodate a negative Bank Rate within six months, without material risks to safety and soundness," Woods said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.