The BoE is Considering a Reform of its Deposit Guarantee Scheme
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The UK’s Financial Services Compensation Scheme is reportedly undergoing a major review, spurred by the sudden collapse of Silicon Valley Bank last month.
BoE Governor Andrew Bailey has indicated that the Bank of England is looking into ways to speed up pay-outs to depositors of smaller banks, and the Financial Times is reporting that this overhaul could include raising the amount of money businesses are covered for and requiring banks to pre-fund the system.
A BoE spokesperson declined to comment on the report. Global banking stocks were sent into a tailspin following the failure of Silicon Valley Bank and the forced takeover of Credit Suisse by UBS, but markets have since calmed.
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