RBS, HSBC and Barclays IT system failures

25 January 2016

The Treasury Committee publishes correspondence between Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, and RBS, HSBC, Barclays, the Financial Conduct Authority and Prudential Regulation Authority, Bank of England, in relation to IT system failures at each of the banks during the period June to November 2015.

Chair's comments

Mr Tyrie has written to Andrew Bailey, Deputy Governor of the Bank of England and Chief Executive Officer of the PRA, and Tracey McDermott, Acting Chief Executive of the FCA, in the light of these replies.

Commenting on the correspondence, Mr Tyrie said:

"Every few months we have yet another IT failure at a major bank. These IT blunders and weaknesses are exposing millions of people to uncertainty, disruption and sometimes distress. Businesses suffer, too. We can’t carry on like this.

Bank IT systems don’t appear to be up to the job. This brings with it not just conduct risk, but also systemic risk. Someone - probably the head of the PRA, needs to assume a leadership role, bring together those most involved among regulators and government agencies, and ensure that there are improvements at the banks. Until these are made, the public will remain more exposed than necessary to the risks of banking failures, including delays in paying bills, an inability to obtain their own money, and unauthorised access to their accounts."

Correspondence with the Bank of England

Correspondence with HSBC

Correspondence with RBS

Correspondence with Barclays

Correspondence with the Financial Conduct Authority (FCA)

Further information

Image: iStockphoto

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