HomeTop Global NewsBank of England Governor Suggests Liquidity Rules Need to Be Reevaluated Following...

Bank of England Governor Suggests Liquidity Rules Need to Be Reevaluated Following Silicon Valley Bank Collapse

Former Bank of England Governor Mark Carney suggested on Tuesday that banking rules introduced over the past decade need to be restructured in order to accommodate the speed at which cash can exit a lender in today’s times.

Carney’s comments came in response to the recent banking turmoil that has caused anxiety across global financial markets. In Carney’s eyes, the collapse of Silicon Valley Bank, which sparked the beginning of the turmoil, highlighted exactly why such reflection is needed.

Over $40 billion was withdrawn from Silicon Valley Bank during the 24 hours after its failure. This phenomenon got authorities thinking of another emerging risk, namely the “social media bank” from which clients are able to withdraw funds with just a few taps on their phone.

“That will, I think, require some rethinking of the assumptions behind liquidity coverage ratio, the net stable funding ratio,” Carney stated during his interview on a Reuters Breakingviews podcast.

Home Prices Rise for Second Straight Month

U.S. home prices increased for a second consecutive month in March, reflecting the sustained inventory shortage faced by buyers. This streak comes after seven...

Futures Rise as Debt Ceiling Deal Set for Next Challenge

U.S. futures advanced during Tuesday's morning session as investors wait for the U.S. debt-ceiling deal to be presented before Congress. Policymakers are under pressure...

Oil Remains Steady as Traders Await Approval of Debt Ceiling Deal

Oil remained little changed on Monday as traders wait to see if lawmakers approve the U.S. debt ceiling deal that policymakers agreed to on...