Welcome to The Current Account! We hope you enjoy our latest round-up of the top news from the industry in April.
Headlines from the banking sector this month
In this edition of The Current Account, we look at the US banking crisis and automation in banking.
A turbulent few months in the banking sector…
A turbulent few months in the banking sector with three bank failures in the US since March, with First Republic Bank becoming the latest, and second-largest bank, to fail in US history
- The US banking system has been under further pressure as Pacific Western and First Horizon, following updates that unsettled the market, saw a decline in share price for both institutions and could lead to customers shifting funds to larger banks
- The continued Interest Rate rises by the Federal Bank to tackle inflation is exacerbating the issue, particularly for smaller banks
- Over in the UK, the Treasury has confirmed the country’s “banking system remains safe, sound and well capitalised”
- The Bank of England has been on heightened alert for further turmoil since the US bank failures in March and the takeover of Credit Suisse, and there is the belief that rising interest rates are less of an issue for UK lenders