April 7 British banks will have to spend
billions overhauling their creaking IT systems over the next few
years, Prudential Regulation Authority chief Andrew Bailey told
In an interview with the newspaper, Bailey warned lenders of
a need to address a patchwork of computer systems.
"This is an industry with complex and quite aged IT - often
complex because companies have grown up through acquisition,"
"What would be a very bold thing to do is stripping the
machine down and rebuilding it instead of bolting bits together
in complex fashions so you end up with a very complex
architecture," he added.
Bailey also stressed the scale, frequency and severity of
"It is a big issue. You cannot mitigate it with capital, and
you really cannot ever hope to finally mitigate it because they
do not go away," Bailey told The Independent.
(Reporting by Aashika Jain in Bangalore; Editing by Eric Walsh)