Protection payout call for banks

[Sweetpea]

BANKS should pay "billions" into a depositor protection fund planned under new legislation.
Bank of England governor Mervyn King told MPs that lenders should also contribute according to how risky they are .
King was speaking to the treasury select committee on the issue of banking reform.
A series of measures have been proposed in the wake of the Northern Rock fiasco.
These include better protection for savers and a regime for failing banks which would allow regulators to take control of them more easily.
Asked how much banks should contribute to the depositor protection fund, King said: "Something that would amount to a nonnegligible contribution.
"Over 10 years you would have many billions."
The governor said he was in favour of a "risk-based premium" for banks taking part in the protection scheme.
He added that institutions "should pay a contribution which reflects the riskiness of the bank".

Protection payout call for banks - The Daily Record


A good idea!

[Churchill]

the horse has already bolted though.

[poppy]

may get a new horse

[Haqa]

May get a new backing system you mean?

H.