Bulletin: Bank of England Sees Further Resolvability Progress From U.K. Banks

LONDON (S&P Global Ratings) Aug. 6, 2024--The Bank of England (BoE) confirmed today that the eight largest U.K. banks are substantially resolvable. The BoE's first resolvability assessment in 2022 found that the sector was well-placed but had some specific deficiencies to address, and this year's follow-up exercise concluded that many of these gaps have been closed. We see the residual issues identified by the BoE today as areas requiring further work to maximize preparedness rather than material obstacles to an effective resolution. The resolvability assessment outcome confirms our view that there is a viable alternative to taxpayer-funded bailouts, and government support for a failing bank is an uncertain prospect. Since the BoE's first resolvability assessment, Swiss authorities' reluctance to use

...August 6, 2024 LONDON (S&P Global Ratings) Aug. 6, 2024--The Bank of England (BoE) confirmed today that the eight largest U.K. banks are substantially resolvable. The BoE's first resolvability assessment in 2022 found that the sector was well-placed but had some specific deficiencies to address, and this year's follow-up exercise concluded that many of these gaps have been closed. We see the residual issues identified by the BoE today as areas requiring further work to maximize preparedness rather than material obstacles to an effective resolution. The resolvability assessment outcome confirms our view that there is a viable alternative to taxpayer-funded bailouts, and government support for a failing bank is an uncertain prospect. Since the BoE's first resolvability assessment, Swiss authorities' reluctance to use resolution powers following Credit Suisse's collapse sparked a debate about whether resolution frameworks are effective, particularly when financial markets are volatile (see...

Bulletin