According to its governor, the Bank of England is on "heightened" alert for any additional turbulence in the banking sector.

Andrew Bailey, however, told MPs that the recent problems with lenders has not created stress within the UK banking system.

Since the failure of Signature Bank and Silicon Valley Bank, officials have attempted to calm investors due to raised concerns over the stability of other lenders.

In Europe, concerns surrounding the soundness of Swiss bank giant Credit Suisse led rival firm UBS to a rush take over.

Confidence amongst investors has caused sharp drops in bank shares all over the globe.

Mr Bailey stated to MPs on the Treasury Committee that the Bank of England would continue to be vigilant.

He stated that we were in a period of "high tension and alertness".

The biggest banking collapse in the US since 2008 was Silicon Valley Bank, where depositors were left struggling to get their money out.

Customers were protected by regulators and the UK branch of SVB was saved by HSBC.

Bank officials told MPs that they were taken aback by SVB's rapid collapse, which may indicate that bank rules might need to be updated.

It was the "fastest collapse from health and death" since 1995 Mr Bailey stated, when the UK's Barings Bank suffered heavy losses due to fraudulent investments. Sam Woods, chief executive of Prudential Regulation Authority noted that SVB UK saw around £3bn, a third its deposits, withdrawn in just one day.

Mr Bailey suggested to MPs that the stress tests applied to UK banks, to ensure they can withstand a crisis, may need to be looked at, considering now how electronic withdrawals of deposits can be made in seconds using new technology. Mr Bailey explained MPs that he didn't think the UK was in a similar situation to 2008's global financial crisis. This was when banks stopped lending each to other and caused a deep recession around the world.