Bank of England issues statement, says U.K. banking system ‘safe and sound’

The Bank of England issued the following statement: "The UK’s bank resolution framework has a clear statutory order in which shareholders and creditors would bear losses in a resolution or insolvency scenario. This was the approach used for the recent resolution of SVB UK, in which all of SVB UK’s Additional Tier 1 – AT1 – and T2 instruments were written down in full and the whole of the firm’s equity was transferred for a nominal sum of GBP 1. AT1 instruments rank ahead of CET1 and behind T2 in the hierarchy. Holders of such instruments should expect to be exposed to losses in resolution or insolvency in the order of their positions in this hierarchy. The Bank welcomes the comprehensive set of actions taken yesterday by the Swiss authorities in order to ensure financial stability. The UK banking system is well capitalised and funded, and remains safe and sound." Some of the largest U.K. banks include Lloyds Banking (LYG), Barclays (BCS) and HSBC (HSBC). Reference Link