For three days in August 2007, the

For three days in August 2007, the UK experienced its first run on a bank since Overend and Gurney, the London wholesale discount bank in 1866. Around £3 billion of deposits were withdrawn (around 11 percent of the bank’s total retail deposits) from a medium sized bank – Northern Rock (NR). The unedifying spectacle of widely-publicised long queues outside the bank’s branches testified to the bank’s serious problems. The NR crisis was the first time the Bank of England (BOE), the UK’s central bank, had operated its new money market regime in conditions of acute stress in financial markets, and it was the first time it had acted as a lender-of-last-resort for many years.
Northern Rock (previously a UK mutual building society) converted to bank status in 1997. Without the previous constraints on its operating permissions, it acquired legal powers to conduct the full range of banking business. However, it remained focussed predominantly on the residential mortgage market. From the outset, it adopted a securitisation and funding strategy which was increasingly based on secured wholesale money (by issuing mortgage-backed securities) and other capital market funding.
Before considering the nature of the NR crisis, several points of perspective are noted at the outset: the bank remained legally solvent (the nominal value of assets exceeding liabilities), only months earlier the bank had reported record profits, the quality of its assets was never in question, its loan-loss record was good by industry standards, and for many years the bank was regarded as a star-performer in the financial markets.
Two problems emerged during the summer months of 2007: there was a generalised lack of confidence in a particular asset class (mortgage bank securities) associated in large part with developments in the sub-prime mortgage market in the United States; and doubts emerged about the viability of the NR business model in particular.
In September 2007, NR was forced to seek substantial assistance from the BOE even after the regulatory authorities, the UK’s Financial Services Authority (FSA) and the Treasury (the UK government’s finance office), had given assurances that the bank was solvent, and all deposits at the bank would be guaranteed.

Results (Indonesian) 1:

Selama tiga hari pada bulan Agustus 2007, Inggris berpengalaman pertama dijalankan pada bank sejak Overend dan Gurney, bank diskon Grosir London pada tahun 1866. Di sekitar £3 miliar deposito yang ditarik (sekitar 11 persen dari total ritel deposito) dari bank berukuran menengah-Northern Rock (NR). Tontonan unedifying luas dipublikasikan antrian panjang di luar cabang bank menyaksikan bank masalah serius. Krisis NR adalah pertama kalinya Bank of England (BOE), bank sentral Inggris, telah dioperasikan rezim pasar uang yang baru dalam kondisi stres akut di pasar keuangan, dan itu adalah pertama kalinya ia telah bertindak sebagai pemberi pinjaman-dari-terakhir-resor selama bertahun-tahun.Northern Rock (sebelumnya UK saling membangun masyarakat) dikonversi ke bank status pada tahun 1997. Tanpa kendala sebelumnya pada izin operasi yang, mengambil alih kewenangan hukum untuk melakukan berbagai macam bisnis perbankan. Namun, tetap difokuskan terutama pada pasar perumahan hipotek. Dari awal, itu mengadopsi sekuritisasi dan strategi pendanaan yang semakin berdasarkan aman Grosir uang (dengan mengeluarkan mortgage-backed securities) dan dana pasar modal lain.Before considering the nature of the NR crisis, several points of perspective are noted at the outset: the bank remained legally solvent (the nominal value of assets exceeding liabilities), only months earlier the bank had reported record profits, the quality of its assets was never in question, its loan-loss record was good by industry standards, and for many years the bank was regarded as a star-performer in the financial markets.Two problems emerged during the summer months of 2007: there was a generalised lack of confidence in a particular asset class (mortgage bank securities) associated in large part with developments in the sub-prime mortgage market in the United States; and doubts emerged about the viability of the NR business model in particular.In September 2007, NR was forced to seek substantial assistance from the BOE even after the regulatory authorities, the UK’s Financial Services Authority (FSA) and the Treasury (the UK government’s finance office), had given assurances that the bank was solvent, and all deposits at the bank would be guaranteed.

Results (Indonesian) 2:

Selama tiga hari pada bulan Agustus 2007, Inggris mengalami run pertama pada bank sejak Overend dan Gurney, diskon wholesale bank London pada tahun 1866. Sekitar £ 3 miliar deposito ditarik (sekitar 11 persen dari total deposito ritel bank) dari menengah Bank - Northern Rock (NR). Tontonan tidak membangun dari banyak dipublikasikan antrian panjang di luar cabang bank bersaksi untuk masalah serius bank. Krisis NR adalah pertama kalinya Bank of England (BOE), bank sentral Inggris, telah beroperasi rezim baru pasar uang dalam kondisi stres akut di pasar keuangan, dan itu adalah pertama kalinya ia telah bertindak sebagai pemberi pinjaman-dari -Terakhir-resort selama bertahun-tahun.
Northern Rock (sebelumnya masyarakat bangunan saling Inggris) dikonversi menjadi bank pada tahun 1997. Tanpa kendala sebelumnya pada izin operasi, mengakuisisi kekuatan hukum untuk melakukan berbagai macam bisnis perbankan. Namun, tetap difokuskan terutama pada pasar hipotek perumahan. Dari awal, mengadopsi strategi sekuritisasi dan pendanaan yang semakin didasarkan pada uang grosir dijamin (dengan menerbitkan surat berharga berbasis mortgage) dan pendanaan pasar modal lainnya.
Sebelum mempertimbangkan sifat krisis NR, beberapa poin dari perspektif dicatat di awal: bank tetap pelarut secara hukum (nilai nominal aset melebihi kewajiban), hanya beberapa bulan sebelumnya bank telah melaporkan rekor keuntungan, kualitas aset tidak pernah dipertanyakan, rekor pinjaman-kerugian baik oleh standar industri, dan untuk bertahun-tahun bank dianggap sebagai bintang-pemain di pasar keuangan.
Dua masalah muncul selama bulan-bulan musim panas 2007: ada kurangnya umum kepercayaan di kelas aset tertentu (surat berharga bank hipotek) terkait sebagian besar dengan perkembangan pasar hipotek sub-prime di Amerika Serikat; dan keraguan muncul tentang kelangsungan hidup model bisnis NR khususnya.
Pada bulan September 2007, NR terpaksa mencari bantuan substansial dari BOE bahkan setelah pihak berwenang, Inggris Financial Services Authority (FSA) dan Departemen Keuangan (keuangan pemerintah Inggris kantor), telah memberikan jaminan bahwa bank adalah pelarut, dan semua deposito di bank akan dijamin.