In the News - Saving compensation
Changes to bank savings compensation scheme unworkable
Representatives of the UK banking industry have criticised the Government's proposals to increase the protection limit for savers under the Financial Services Compensation Scheme from £35,000 to £50,000 (reported in 'In the News' on 1 July 2008). While initially welcoming the proposals, banks now believe that they may be unworkable without a constantly-updated, centralised database that stores details of every bank customer's account.
The problems centre around the Government's proposals to take the savings accounts of any failed bank and auction these off to other banks. Because of the lack of interoperability between banks' computer systems and without a centralised database of accounts, it could take several weeks to implement any savings transfer.
(Sources: Telegraph.co.uk)
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07-Jul-2008 11:13:12
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