Most banks need "quick fixes" for any sub-zero rates, says BoE
Reuters
Published Feb 04, 2021 13:02
Updated Feb 04, 2021 13:15
LONDON (Reuters) - Even "quick fixes" to bank systems would take at least six months to be ready to implement any sub-zero interest rates, the Bank of England's top banking supervisor said on Thursday.
The BoE's Prudential (LON:PRU) Regulation Authority, headed by BoE Deputy Governor Sam Woods, asked banks how much time they would need to get ready to implement any negative rates.
Woods said in a letter to heads of lenders published on Thursday that a majority of firms said would need to make some changes to systems and processes to implement permanent changes or tactical or short-term workarounds.
"On the basis of firms' responses to this exercise, the PRA understands that the majority of firms would be able to implement tactical solutions to accommodate a negative Bank Rate within six months, without material risks to safety and soundness," Woods said.
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Written By: Reuters
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