Masterclass Mini-Series Part 2: Bank Resolution: Implications of Recent Bank Collapses for UK Resolution

Masterclass Mini-Series Part 2: Bank Resolution: Implications of Recent Bank Collapses for UK Resolution

Wednesday 24th May at 5pm online, via Zoom

The UK banking market structure is unique, but there are certain features which could recreate some of the stresses seen in the 2023 collapses in other countries.  For ringfenced banks and smaller banks not subject to ringfencing,  Peter Freilinger will look at account mobility and relative customer balances, along with deposit pricing norms and ALM practices and compare them to the US experience to present his views on where potential cracks could exist in the FSCS and portability regimes.  For the ‘megabanks’, meanwhile, who’s asset size and global complexity are similar to that seen in Switzerland’s handling of the CS meltdown, Peter will look to whether a potential “too big to regulate” risk is meaningful, and whether the reliance on the bail-inable liability stack is enough to enable a smooth transition from resolution to recovery – or whether the BoE would, like Swiss authorities, be forced to arrange an emergency reluctant merger.