BOE Considers Reform of Deposit Guarantee Scheme, FT Says
- Reform being considered in the wake of recent bank failures
- BOE’s Bailey says smaller bank depositors need more protection
The Bank of England headquarters in the City of London, UK.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The Bank of England is considering an overhaul of its deposit guarantee scheme after the recent global banking crisis, the Financial Times reported, citing people briefed on the central bank’s plans.
Reforms under consideration include raising the amount covered for businesses from the current £85,000 ($105,500) limit, as well as forcing banks to pre-fund the system to a greater extent to speed up payouts, the newspaper reported.