BBA disappointed by PRA changes to depositor protection amount
(7 July 2015 – Britain) Following the United Kingdom Prudential Regulation Authority‘s (PRA) announcement that there will be changes to depositor and policyholder protection provided by the Financial Services Compensation Scheme (FSCS), the British Bankers’ Association (BBA) has said it is disappointed.
The depositor and policyholder protection was reduced from £85,000 (A$176,013) to £75,000.
A BBA spokesman said it was disappointing that this protection had been reduced from £85,000.
“It had become well known and recognised by customers and banks alike.
“Our firms will work with the PRA and FSCS to implement the new £75,000 limit and assess the implementation issues that arise given that the transition period ends on 31 December 2015.
“A huge amount has been done to make the UK’s banking system safer for the future,” the spokesman said.
“As the Bank of England has stated, banks in the UK are now strong enough to weather even the severest of financial storms, and now hold five times more capital than they did before 2008.”
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