The new Bank of England regulatory body, the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) have announced that UK depositors in Cyprus' Laiki bank could now be protected.
Cyprus Popular Bank Public Co Ltd operating in the UK under the trading name ‘Laiki Bank UK’ has today reached an agreement with Bank of Cyprus UK Ltd to transfer all deposits to Bank of Cyprus UK, a UK subsidiary fully regulated by the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) and covered by the UK Financial Services Compensation Scheme (FSCS) up to £85,000 per depositor.
Laiki UK branch deposits transferred to Bank of Cyprus UK. £270m, 15k acounts, average £18k. Now covered by UK deposit insurance of £85k.— Faisal Islam (@faisalislam) April 2, 2013
Bank of Cyprus UK separate subsidiary, regulated by Bank of England withassets to match UK deposits/liabilities. £85k UK deposit scheme...— Faisal Islam (@faisalislam) April 2, 2013
... that said, fact that Laiki / Popular UK still had £270m deposits in it when it closed this morning, is a testament to deposit stickiness— Faisal Islam (@faisalislam) April 2, 2013