FSA Statement: Northern Rock

The FSA reiterates that it judges Northern Rock to be solvent and that savers can continue to deposit and withdraw funds.

Clearly, there have been some operational problems with queues at some branches and difficulties with the bank's website caused by the unusually high volumes of customers trying to access their accounts as a result of the publicity surrounding Northern Rock. These problems are entirely logistical and are in no way related to the bank's solvency or its underlying ability to deliver funds to savers who wish to withdraw.

Callum McCarthy, chairman of the FSA, said:

"To be absolutely clear, if we believed that Northern Rock was not solvent, we would not have allowed it to remain open for business. It is open for business and it can continue to receive deposits and allow customers to make withdrawals."