The governor of the Bank of England has repeated that he does not think the world is facing a “systemic banking crisis” following a series of recent failures in the sector.

Speaking at an event in Washington, Andrew Bailey said the reforms that were put in place after the 2008 financial crisis “have worked”, and banks in the UK are in a good position.

“In recent weeks we have seen the crystallisation of problems in a few parts of the banking sector,” he said at an event hosted by the Institute of International Finance.

“This is against a background of a necessary sharp tightening in monetary policy to bring down inflation from levels that are much too high.

“All of this has to be set against the most serious global pandemic for at least a century and the most serious war in Europe since 1945.

“Let me therefore draw a first set of conclusions and propositions from what is going on.

“The post-crisis reforms to bank regulation have worked. Today I do not believe we face a systemic banking crisis.

“When I look at the UK banks, they are well capitalised, liquid and able to serve their customers and support the economy.”

But he added that the current size of protections for bank liquidity might not be right in the future.

The collapse of Silicon Valley Bank, a major US lender, last month shows that modern technology has made a traditional bank run much faster and deeper, Mr Bailey said.

“This must beg the question of what are appropriate and desired liquidity buffers that create the time needed to take action to solve the problem.”