The British Bankers' Association supports the need for the public to be confident that if their bank gets into difficulties their savings are safe and they can get access to their money quickly.
But to focus on a specific amount of depositor protection is to miss the most important point: it is better not to need it at all. We have been talking with the Government and regulators about intervening earlier should a bank get into difficulties to prevent a banking problem becoming a crisis.
The UK has a strong and robust banking system and a depositor protection scheme which already protects fully some 96 per cent of depositors. We will continue to work with the Government to ensure the safeguards to the UK's financial stability remain strong, effective and readily understood by the saving public.
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But to focus on a specific amount of depositor protection is to miss the most important point: it is better not to need it at all. We have been talking with the Government and regulators about intervening earlier should a bank get into difficulties to prevent a banking problem becoming a crisis.
The UK has a strong and robust banking system and a depositor protection scheme which already protects fully some 96 per cent of depositors. We will continue to work with the Government to ensure the safeguards to the UK's financial stability remain strong, effective and readily understood by the saving public.
More...
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