Jeremy Hunt has spoken out on fears of a 2008-style monetary crash amid rising turbulence in world markets. The Chancellor sought to quell fears, telling LBC’s Andrew Marr the UK has a “very well-regulated properly capitalised system.”

When requested if he’s “involved that we’re heading for 2008 second”, Mr Hunt responded: “I am actually sorry, however there’s a golden rule that finance ministers by no means touch upon market actions for apparent causes.

“So, what I’ll say is that final weekend speaking concerning the previous once we have been coping with the Silicon Valley Financial institution situation, the Governor of the Financial institution of England advised me and mentioned publicly many instances that he had absolute confidence within the stability of the UK monetary system.

“And I believe we must always recognise that we’ve a really well-regulated properly capitalised system.”

Final Friday, Silicon Valley financial institution within the US collapsed, sending shares falling in different small and medium-sized banks.

In a report on Thursday, Goldman Sachs elevated its chance of the US financial system coming into a recession within the subsequent 12 months by 10 proportion factors to 35 p.c as a result of stress on small banks.

However on the identical day, Treasury Secretary Janet Yellen advised the Senate Finance Committee that the US banking system stays sound.

She mentioned Individuals can really feel assured that their deposits shall be there when wanted.

In remarks at a price range listening to, Ms Yellen mentioned the Authorities had taken “decisive and forceful” actions to safe public confidence within the banking system.

And in an announcement Sunday, President Joe Biden mentioned: “The American folks and American companies can believe that their financial institution deposits shall be there after they want them.”

Within the UK, ripples from Silicon Valley Financial institution’s collapse shook some funds and buyers.

Tom Britton, co-founder of enterprise capital fund SyndicateRoom, advised the Day by day Categorical earlier this week: “Whereas our personal portfolio is minimally uncovered to SVB, the ripples shall be felt throughout the UK tech ecosystem.

“The irony is that focus and good communication are drilled into startups from early on, however the financial institution constructed round startups appears to have failed on each accounts.”