RE: Why is this still under 50p?17 Apr 2023 08:13
The Bank of England is contemplating altering its deposit guarantee scheme, following concerns prompted by the collapse of the Silicon Valley Bank, the Financial Times reported on Sunday citing sources with knowledge of the matter.
The people explained that BoE is considering raising the amount covered for businesses, alongside pushing banks to pre-fund the system more in an effort to speed up cash access in the case of a failure. It was noted that the regulators are worried the current £85,000 limit can only be applied to around two-thirds of deposits, while the somewhat low pre-funding levels mean that clients will be met with a one-week delay before gaining access to cash.
Such issues can negatively affect the confidence in the Financial Services Compensation Scheme, as well as lower the effectiveness of the system to deal with banking crises, the sources underlined.
Baha Breaking News (BBN) / AY