Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Deloitte to investigate Bank of England payment system crash

Matthew Finnegan | Nov. 26, 2014
CHAPS network offline for 10 hours last month.

The Bank of England has appointed Deloitte to conduct a review into the failure of its payment system last month.

The Clearing House Automated Payments System (CHAPS) - which is responsible for processing over £70 trillion a year - was taken offline for 10 hours due to a glitch which blocked high-value transactions such as house purchases.

The system was brought online again later that day after the longest outage in the system's history, with the bank forced to extend operating hours in order to process all payments.

The Bank of England has now hired Deloitte to "investigate the causes of the incident, the effectiveness of the Bank's response and provide lessons learned from the incident".

This will include conducting root cause analysis, an evaluation of the robustness of systems and a governance review into handling of the Real Time Gross Settlements (RTGS) system which underpins CHAPS transfers.

The findings of the review will be presented to the Court of the Bank of England ahead of the publication of a full report into the incident in early 2015.

The Bank of England's regulatory arm, the Prudential Regulation Authority, has supported investigations into the robustness of technology infrastructure in the wider UK banking sector. Last week it contributed to a fine totalling £56 million handed to the Royal Bank of Scotland for its 2012 outage which affected millions of customers.

Its partner organisation, the Financial Conduct Authority, is also currently carrying out an review of the legacy systems used by all lenders in the UK, following a serious of high-profile outages affecting customers.


Sign up for CIO Asia eNewsletters.