The Bank of England announced on Monday that it is introducing rules to increase protection on bank balances to £1m where the balance is temporarily high for such occasions as house sales to save customers spreading the proceeds among banks at £85,000 per bank in order to ensure compensation.
Likewise the protection on certain insurance products will increase from 90% to 100%. For instance death, incapacity, annuities and professional indemnity. In addition the FSCS, Financial Services Compensation Scheme will have to pay up within 7 rather than the current 20 days. So that the chances of a run on a bank like what happened with Northern Rock is less likely.
The post THE BANK OF ENGLAND ANNOUNCE IMPROVED PROTECTION FOR DEPOSITORS AND CERTAIN INSURANCE PRODUCTS appeared first on Alpha 4 U.
Source: Alpha Feed