LONDON, March 28 Reuters Sterling hovered around a twomonth high on Tuesday as the Bank of England BoE said Britain was not experiencing stress linked to the demise of Silicon Valley Bank SVB and Credit Suisse.

BoE Governor Andrew Bailey told parliament39;s Treasury Committee in a hearing on SVB I don39;t think that any, and we39;ve said this, that any of these features cause stress in the UK banking system.

He said the central bank was on alert amid global turmoil in the banking sector.

Markets have been roiled in recent weeks by the collapse of U.S. technology lender SVB RICRICSIVBV.UL, followed by the failures of other U.S. regional lenders and the emergency rescue of Swiss lender Credit Suisse by rival UBS.

Immediate investor concerns over the banking sector eased as regulators moved to refine their responses to the turmoil.

Risksensitive sterling rose 0.2 against the U.S. dollar at 1.2313, not far from an almost twomonth high touched on Thursday. Against the euro, sterling edged 0.1 lower to 87.91 pence per euro.

Focus is still very much on the perceived stability in the banking system, said Simon Harvey, head of FX analysis at Monex, adding that sterling would be sensitive also to U.S. regulators39; comments.

Top U.S. banking regulators plan to tell Congress that the overall financial system remains on solid footing after recent bank failures, but that they will comprehensively review their policies in a bid to prevent future collapses.

Should their…