No risk of UK contagion from SVB collapse: UK Prime Minister Rishi Sunak

UK Prime Minister Rishi Sunak insisted there is no contagion risk to UK banks after the collapse of Silicon Valley Bank, as the government works “at pace” to find a way to ring fence the country’s technology and life sciences industries.
 

“We don’t believe there is a systemic contagion risk,” Sunak told reporters on Sunday on a flight to the US. “We’re working to recognize the anxiety and the concerns customers of the bank have and making sure we can work to find a solution that secures people’s operational liquidity and cash-flow needs.”
 

Asked if the Treasury will come up with a solution by the time the London markets open on Monday morning, Sunak replied: “The Treasury is working at pace.” Sunak told reporters that any talk of setting up an emergency fund is “speculation.”

Asked if he is satisfied that Bank of England Governor Andrew Bailey is overseeing a robust regulatory environment for UK banks, Sunak replied “yes.”