London: Despite recent market jitters, according to Bank of England governor Andrew Bailey, the world is not about to experience another banking crisis on the scale of the 2008 crash.

Speaking in Washington, DC, he claimed that both the banks themselves are in a better position than they were and that the government has better resources to deal with any potential issues.

At an event sponsored by the International Monetary Fund in Washington on Wednesday evening UK time, Bailey said, "I do not see the evidence that we have on our hands what I would call the makings of a 2007/08 financial crisis."

Also Read: Outrage over Israeli restrictions on Easter church crowds in Jerusalem's Orthodox churches

The first line of defence is that, in my opinion, the system is much more robust.

The second line of defence is that we have far more tools at our disposal to deal with these issues than we did in 2007 and 2008, when we were largely improvising as we went along until a crisis hit.

But he added that there were also lessons to be learned from the recent issues in the industry, including how quickly bank runs can occur in the age of technology and the percentage of uninsured deposits in banks.

Bailey claimed earlier in the day that the reforms implemented in the wake of the 2008 financial crisis "have worked" and that UK banks are in a strong position.

In a few areas of the banking sector, problems have recently begun to crystallize, he said at an earlier event sponsored by the Institute of International Finance. This is taking place in the midst of a necessary, abrupt tightening of monetary policy to reduce inflation from far-too-high levels.

"All of this must be considered in the context of the worst global pandemic in at least a century and the worst European war since 1945. So let me make a first set of inferences and assertions about what is happening.

Also Read:  Bahrain and Qatar claim to be resuming diplomatic relations

Because of the success of the post-crisis reforms to bank regulation, I do not think we are currently dealing with a systemic banking crisis. Looking at UK banks, I see that they are well capitalized, liquid, and capable of supporting the economy and their customers.

He did, however, add that future protections for bank liquidity might not be as large as they are now.

Despite decades-high inflation, the UK's economy did not grow in February but managed to stay just out of a recession.

With thousands of workers walking out during the month-long teachers' and civil service strikes, this was one of the biggest drags on GDP.

The growth in the construction industry was offset by the decline in the services sector, which was brought on in part by improved weather conditions, new projects, and repairs.

According to a consensus prediction provided by Pantheon Macroeconomics, analysts had predicted that the GDP would increase by 0.1% in February on a monthly basis.

The economy increased in February by just 0.02%, to two decimal places.

However, when taking a broader view, GDP increased by 0.1% in the three months leading up to February.

It comes as the ONS reported that the UK's consumer prices index (CPI) inflation rate unexpectedly rose to 10.4% in the same month, defying the Bank of England's attempts to bring it down to its 2% target.

"The economic outlook is looking brighter than expected - GDP grew in the three months to February and we are set to avoid recession thanks to the steps we have taken," said Chancellor Jeremy Hunt. "We have taken through a massive package of cost-of-living support for families and radical reforms to boost the jobs market and business investment."

The Office for National Statistics (ONS) had previously predicted that the economy would expand by 0.3% in January, but it actually expanded by 0.4% instead, signalling a slowdown the following month.
 Even so, the UK's GDP barely increased by 0.1% over the final three months of the year, preventing it from entering a recession.

Also Read:  Tribal fighting in West Darfur Sudan claimed 14 lives in three days

In the UK, two consecutive quarters of declining GDP are considered a recession. According to the ONS, for the economy to have experienced negative growth in the most recent quarter, GDP would have to fall below 0.6% in March.

"The economy overall saw no growth in February," said Darren Morgan, the organisation's director of economic statistics.After a disappointing January, construction activity increased significantly, with more repairs being done.