FTAdviser.com

BoE's Tucker stresses need for info from banks in distress

Story by: David Pawsey
Magazine: FinancialAdviser
Published Tuesday , June 30, 2009

Banks need to structure themselves so that an orderly resolution can be executed if required, according to the Bank of England (BoE).

Advertising

Speaking at the British Bankers' Association (BBA) International Banking Conference this morning (30 June), Paul Tucker, deputy governor of the BoE, said banks needed to invest more heavily in the provision of data to ensure that the winding down of failed institutions could be executed effectively.

Tucker highlighted the need for better information from banks, to facilitate rapid payout to retail depositors by the Financial Sector Compensation Scheme (FSCS), to aid the Bank of England’s choice of resolution tools under the UK's Special Resolution Regime, and for potential bidders for part of or all a failed bank.

He emphasises the extent of the BoE’s need for information from banks getting into distress.

He said: "In delivering its resolution responsibilities under the 2009 Banking Act, the Bank is ready to work with banks and the FSA in helping to specify in more detail what is needed in practice.

"We need to engage together constructively on what information the authorities need to handle incipient or actual distress."

** Click here for more coverage of the BBA conference.