UK banking system not seeing stress BoE governor
SVB failure fastest since Barings in 1995
Market is testing some banks
Blanket deposit guarantees should not be norm

LONDON, March 28 Reuters Bank of England officials said on Tuesday the central bank was on alert amid global turmoil in the banking sector but added that Britain was not experiencing stress linked to the demise of Silicon Valley Bank and Credit Suisse.

We are in a period of very heightened, frankly, tension and alertness, BoE Governor Andrew Bailey told parliament39;s Treasury Committee in a questionandanswer session about the upheaval triggered by the recent banking failures.

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.

Markets have been roiled by the collapse of U.S. technology lender Silicon Valley Bank SIVBV.UL, followed by the failures of other U.S. regional lenders and the emergency rescue of Swiss lender Credit Suisse by rival UBS.

Deputy BoE Governor Dave Ramsden said the central bank had to remain incredibly vigilant after the turmoil.

We39;ll keep a close eye on bank funding costs, what the consequences of those could be for households and businesses, equally looking out for other risk factors.

Bailey said the recent swings in the share prices of some banks showed investors were testing the sector.

I think there are moves in markets to, if you like, test out firms, Bailey said.

The failure of SVB had…