Bank of England set to further reform deposit guarantee scheme - reports

Following SVB collapse

The Bank of England is looking to further reform its deposit guarantee scheme after the events of Silicon Valley Bank’s collapse.

The central bank was initially planning to simply raise the £85,000 insurance threshold in the UK, but is now considering changing measures around how bank insolvencies are handled, people familiar with the matter told the Financial Times. These proposed changes would see the deposit guarantee scheme, known as the Financial Services Compensation Scheme (FSCS), stabilise small banks that do not hold loss-absorbing capital buffers, allowing them to remain solvent until they are sold or shut. Bank of England's Bailey: QT not to blame for banking turmoil This would allow the centra...