Carney Launches Investigation on BOE Payment System Crash

October 21, 2014 Share Print 0

The Bank of England has launched a “thorough” and “independent” investigation into what caused a 10-hour crash of the U.K.’s interbank payment system Monday which halted high value payments such as house purchases.

The RTGS (Real Time Gross Settlements) system had been suspended from its open at 6.00 a.m. London time until 4.00 p.m. in the afternoon, bringing the exchange of interbank transactions in the U.K. to a grinding halt. The RTGS then reopened for two hours, giving banks an extended time to submit all their interbank payments for processing. All 142,759 payments on Monday were eventually processed, according to the Bank.

A statement late Monday from Bank Governor Mark Carney stated that the investigation will cover “the causes of the incident, the effectiveness of the Bank’s response and the lessons learned for future contingency plans.”

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.