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Regulation of small banks in the UK: lessons learned from SVB UK

19 March 2024 / Author(s): Bobby Butcher , Elli Karaindrou
Issue: May 2023 / Categories: Feature

This article focusses on the regulatory capital and resolution regime for non-systemic deposit-takers in the UK (for ease, small banks) and potential changes after the resolution of Silicon Valley Bank UK Limited (SVB UK).1 The failure of SVB UK came at an interesting time for prudential regulation of smaller banks as the PRA has been considering the creation of a tailored and proportionate regime. This article considers whether the failure of SVB UK might prompt changes to the PRA’s thinking including making liquidity and concentration risk rules more stringent for banks of all sizes.

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