11:16 AM, 8th October 2014, About 7 years ago 3
The Bank of England, under its Prudential Regulation Authority (PRA), has proposed that by July 2015 a maximum of £1million in savings with an individual bank will be protected for a term of six months.
This is of particular interest to property investors and developers who may have large sums deposited for short periods of time between sale completions and purchases. Currently the maximum protected with an individual bank or building society is £85,000.
The proposals are designed to avoid any future runs on banks such as the one that caused the collapse of Northern rock and to comply with changes to the European directive.
The PRA also have plans to create a system of transferring accounts away from a failed bank to a solvent one so that savers will be able to withdraw funds as required within 24 hours.
Andrew Baily PRA chief executive said the regulations would ensure “a stable financial system” and added “these proposals will allow customers to have continuous access to the money in their bank account.”
This is the first part in the process of making sure retail customer deposits are protected and separated from bank investment activities by 2019. The separate ring fenced arms of banks will be required to have different chief executives and chairmen and plans to achieve this by the end of this year.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|