As consumers became fearful of Northern Rock’s stability following Friday’s developments, the FSA stressed that they have no reason to believe the bank is in anything less than solvent.
FSA chairman, Callum McCarthy, said: "The FSA's judgement on Northern Rock is that we believe it is solvent, meets all capital requirements and has a good quality loan book. We are clear it should continue to be open for business.
"More generally, it is important to remember that the UK banking industry has entered this period of severe market turbulence after several years of very strong market conditions which have helped it build up healthy balance sheets and strong capital positions.
"The FSA remains confident about the industry's ability to withstand current market pressures. We are in constant dialogue with firms to ensure that they are vigilant with regard to potential risks and continue to carefully monitor developments."
Mark Robson, sales director at Northern Rock responded to recent events while assuring intermediaries that nothing had changed:
“Since Northern Rock’s Stock Exchange Trading Statement last Friday, we have been in touch with our key Intermediary contacts to ensure that they are aware that our doors remain open for mortgage business.
“We have been encouraged by the overwhelmingly positive responses that we have received.
“The over-riding message is that Northern Rock is open for business and our full product range is available.
“All mortgage applications, pre and post offer, are unaffected by the announcement and will proceed through to completion in line with our usual process.
“Our Business Development Managers will still be calling and proactively seeking Intermediary business.”
