UK government and BoE weigh immediate access to cash after SVB collapse - Bloomberg News
(Reuters) - The Bank of England and Britain's finance ministry are considering reforms that would provide uninsured depositors with immediate access to their cash in the event of a bank failure, Bloomberg News reported on Thursday.
BoE Governor Andrew Bailey and finance minister Jeremy Hunt have said they are considering changes to the rules for bank deposit guarantees - including the pace of returning money to account holders - after the run on Silicon Valley Bank in the United States.
Authorities were looking into whether some money could be released upfront, which would be covered by taxpayers based on how much cash uninsured depositors were likely to recover, Bloomberg said, citing government officials.
Spokespeople for the Treasury and the BoE declined to comment.
Bloomberg said discussions were at an early stage and a number of options on deposit insurance reform were being considered.
(Reporting by Chandni Shah in Bengaluru and William Schomberg in London; Editing by Alison Williams and David Milliken)