Part B Merger, Reorganization, and Insolvency of Banks, 13 Deposit Protection Schemes

Subject(s):

Deposit insurance schemes — Deposit protection schemes — Regulation of banks — Bank of England

This chapter reviews deposit protection arrangements which come into operation on the insolvency of a bank. It covers EU law requirements in the field of deposit protection; the implementation of those requirements in the UK by means of the Financial Services Compensation Scheme; the revisions to the powers and role of that scheme made pursuant to Part 4 of the Banking Act 2009; and the legal aspects of the recent diplomatic rift between the UK and Iceland, following from deposit protection arrangements applicable to the UK branch of an Icelandic bank.