Bank of England unveils plan to enhance bank liquidity in crises

The Bank of England on Tuesday published proposals aimed at ensuring banks can monetise liquid assets quickly in fast-paced stress events.

The BoE's prudential arm said the changes focus on ensuring liquid assets are usable in stress events, rather than increasing the amount of liquid assets banks have to hold.

Sam Woods, Chief Executive Officer of the Prudential Regulation Authority, said the proposals built on lessons learned from the collapse of Silicon Valley Bank and Credit Suisse in March 2023.

-Reporting by Phoebe Seers, Editing by Iain Withers/Reuters