Proactive Investors - British banks are seeing a pick-up in enquiries to switch cash between institutions after the collapse of US tech lender Silicon Valley Bank, as contagion fears prompt some depositors to try to figure out the safest harbours for their funds, according to a report on Reuters.
Barclays, one of the country's biggest lenders, said it had seen an increase in enquiries to switch or open business accounts in the past few days. Virgin Money, Britain's sixth largest bank, said in a statement it had also seen "net business deposit inflows in recent days".
SVB's failure has rocked global markets over the past week, with contagion concerns spreading to Swiss lender Credit Suisse, forcing the country's central bank to shore up its liquidity on Thursday in a move that brought some respite.
The British government and the Bank of England have said the country's banking system is safe, sound and well capitalised, while the UK arm of SVB was rescued by Europe's largest bank HSBC) on Monday.
In the US, leading banks have joined forces to support First Republic Bank, pumping US$30bn in to the troubled bank.
UK banks made solid progress on Friday as part of broader market rally.
Shares in Lloyds Banking Group PLC, Barclays PLC and NatWest Group PLC rose 1.4%, 1.6% and 0.4% respectively albeit well off opening highs.