Bank of England officials to be quizzed over Silicon Valley Bank’s collapse and HSBC’s cut-price bailout of its UK branch
Bank of England officials will be quizzed by MPs over the collapse of Silicon Valley Bank and the cut-price bailout of its UK branch by HSBC.
Amid growing concern over the regulation of the global banking system, the House of Commons Treasury Committee said it would question Bank Governor Andrew Bailey and other top executives on March 28.
The move came as the Bank’s former chief economist called for tougher regulation of the industry.
Banking crisis: House of Commons Treasury Committee says it will question Bank Governor Andrew Bailey and other top executives
In a letter to Bailey, committee chair Harriett Baldwin asked the governor to detail how SVB UK was overseen before the collapse as well as how HSBC was chosen to take over the bank.
She also asked “what lessons can be drawn” from the episode on the regulation of the banking system.
In a letter to Andrew Griffith, Economic Secretary to the Treasury, Baldwin asked what other support was being considered for SVB UK at the time of the HSBC bailout, as well as whether smaller banks serving ‘strategic sectors’ of the economy needed support. more regulation.
Meanwhile Sir John Vickers, the Bank’s former chief economist, said “more can be done” to tighten regulations introduced after the 2008 financial crisis.