- strengthen the stability of the financial system, both in the UK and globally;
- reduce the likelihood of banks facing difficulties;
- reduce the impact if, nevertheless, a bank gets into difficulties;
- provide effective compensation arrangements in which consumers have confidence; and
- strengthen the Bank of England, and ensure effective coordinated actions by authorities, both in the UK and internationally.
Banking Reforms
The Chancellor of the Exchequer has announced proposals for strengthening the current framework for financial stability and protecting depositors. These proposals are designed to:
At this stage these are proposals. The Treasury, Bank of England and FSA are consulting on them widely, including with key consumer groups, to make sure they are workable.
In the meantime, all existing measures to safeguard depositors' money remain in place.
Source: FSA