Thursday, 18 April 2024
Bank of England payments glitch causes delays for wholesale bank transactions
A technological glitch at the Bank of England has hit wholesale bank transactions in a move that means some payments expected tonight will be delayed.
The Bank was forced to send out a message last night warning that it was facing “intermittent technology communication problems” that had impacted its ability to process some transactions.
However, the problem had not impacted the UK’s clearing house automated payment system (Chaps), which processes large payments for house sales, nor its real-time gross settlement service (RTGS), another crucial part of the UK’s payments infrastructure.
The general public will see no impact on any of their banking services, the Bank said. It is expected to issue an update. One source said the fault was “not seismic” and nothing like the outage of 2014, which affected Chaps and RTGS, hitting thousands of home buyers.
Bank of England Governor Mark Carney promised to review the system after the shutdown in 2014, which caused a backlog of transactions including the purchase of 2,450 homes.
“We have implemented workarounds to enable the Bank to operate as normal, including completing wholesale transactions in as timely a way as possible. We are working to resolve the underlying issue as quickly as we can,” the Bank said in a statement.
Re-disseminated by The Asian Banker from Telegraph
