BoE watching UK banks after American tech bank goes under

diystarter7

Hi

One would have thought that after 2008/9 all was made safer. Graudally, things slid IMO poor loans again
However, I'm not hot on this but this time its to do with bonds and interest rates. However, its like riaking loads of money in the hope things wont go wrong, just like living from hand to mouth enjoying the good times and think wrongly thingns could not go very bad and we get this.

The deal done the other night, a sticky plaster job that is not good long term.
IMO, we can now expect more of the same but hopefully it will all be controlled and not a repeat of 2008/9 but not great

Thnaks

diystarter7

Btw - Please read my post from the a few days ago re 85k safety net

Sea_Shell

The thing is, even with the £85k protection, people now have the ability to instantly move lots of their money electronically away from any bank they might feel "twitchy" about.

How long would it take for the protection to kick in, and gain access to your money, if it was ever required?

 

Rob5342

Sea_Shell said:

How long would it take for the protection to kick in, and gain access to your money, if it was ever required?

 

According to the FSCS website, savings and current accounts will automatically be compensated in 7 - 10 days. It shouldn't be a problem for savings but it's always a good idea to have a second current account with a different bank that you could use (I have 4)

Sea_Shell

Rob5342 said:

Sea_Shell said:

How long would it take for the protection to kick in, and gain access to your money, if it was ever required?

 

According to the FSCS website, savings and current accounts will automatically be compensated in 7 - 10 days. It shouldn't be a problem for savings but it's always a good idea to have a second current account with a different bank that you could use (I have 4)

Thanks.

I have 3 😉

Some might still choose a pre-emptive move away, rather than potentially have to wait 10 days.

[Deleted User]

I had an info sheet with my latest bank statement from RBS regarding protection. I keep little cash in banks, my money is in metals and my pension (which I’m more worried about)

eDicky

Sea_Shell said:

Rob5342 said:

Sea_Shell said:

How long would it take for the protection to kick in, and gain access to your money, if it was ever required?

 

According to the FSCS website, savings and current accounts will automatically be compensated in 7 - 10 days. It shouldn't be a problem for savings but it's always a good idea to have a second current account with a different bank that you could use (I have 4)

Some might still choose a pre-emptive move away, rather than potentially have to wait 10 days.

It's when enough people start making that choice that causes the run on a bank and its downfall...

born_again

The only issue is the media starting a run on a bank as some people believe every work they say. So will jump & go & queue up just to get their cash out to stick under the bed, despite it being covered anyway. As no way would you be able to get more than £85K out in one go..

[Deleted User]

You can’t even transfer more than 25k without visiting a branch.

born_again

Deleted_User said:

You can’t even transfer more than 25k without visiting a branch.

It is now possible to send individual payments of up to £1 million using the Faster Payments System

https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/transaction-limits/

But that is not the issue. As pointless transferring from one bank to another.

The issue is like the problem Northern Rock faced in Sept 2007. Had people not queued at branches to get cash out. We would never have faced the mess of 2008. As it would have been managed by the banking industry itself.

On September 13, 2007, the BBC’s evening television news broadcast first broke the news that Northern Rock had sought the Bank of England’s support. The next morning, the Bank of England announced that it would provide emergency liquidity support. It was only after that announcement that central bank had announced its intervention to support the bank—that retail depositors started queuing outside the branch offices.