The U.K. unit of Cyprus Popular Bank Pcl, known as Laiki Bank, agreed to transfer all its deposits to Bank of Cyprus U.K. after the Mediterranean nation decided to shut the lender as part of an international bailout.
Laiki Bank U.K. customers will be able to access their funds “as normal and do not need to do anything,” the Bank of England’s Prudential Regulation Authority said in a statement in London today. Bank of Cyprus U.K. deposits are insured for as much as 85,000 pounds ($129,000) per depositor by the British government, according to the statement.
The government in Cyprus agreed to close Cyprus Popular Bank, the nation’s second-biggest lender, as part of a 10 billion euro ($13 billion) bailout. Cyprus Popular Bank deposits of less than 100,000 euros will be absorbed by Bank of Cyprus and those above that level will be placed in a so-called bad bank, the Nicosia-based central bank said on March 30.
Laiki Bank mortgages and loans won’t be transferred to Bank of Cyprus U.K., according to the PRA. Customers should continue to make repayments on mortgages “as normal,” the authority said.
Bank of Cyprus said in a statement today that 15,000 accounts had been moved, with a combined balance of 270 million pounds.
“To ensure continuity of service during transition, holders of transferred deposits can continue to use the branch services of the Laiki U.K. branch,” Bank of Cyprus said in the statement.