BoE's Woods outlines plans to overhaul banking regulation after SVB and Credit Suisse collapses

In a speech last night (16 October), Sam Woods, deputy governor of the BoE and head of the Prudential Regulation Authority, said the central bank was considering new rules that would see the Treasury paying out deposits from small banks in the event of a collapse. While large banks can maintain depositor continuity through the BoE writing down the value of the long-term debt held by the bank and then recapitalising and restructuring it, small banks do not currently have access to this option, Woods said. Instead, the current alternative to keep a failed firm open would be having the B...