Regulator acts to improve confidence
BRITAIN’S banks must post information in branches and on websites by September spelling out clearly who will reimburse customer deposits if the lender goes bust, the Financial Services Authority (FSA) said yesterday.
The regulator said the move is part of a long-term initiative to improve battered public confidence in banks.
Britain had to rescue several lenders in the 2007-09 financial crisis when the country saw its first bank run in over a century. Concerns have increased in recent weeks amid fears Greece may crash out of the euro zone.
Spain is also battling to stabilise its banking sector.
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Hide AdAndrew Bailey, the FSA’s director of UK banks and building societies, said yesterday: “Customers need to feel confident about their money and to do this they need to know what the compensation limits are and which scheme would provide cover in the event of a bank, building society or credit union failure.”