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RegulationsMay 15 2023

Does the UK’s deposit guarantee scheme need reform?

In the wake of recent bank failures, questions are being raised over the UK’s compensation scheme – is there more that can be done? By Tom Aries.
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Does the UK’s deposit guarantee scheme need reform?Image: Getty Images

There have been several US bank failures this year: Silicon Valley Bank (SVB), Signature Bank and most recently First Republic Bank. The SVB saga in particular has identified interesting differences in the way the UK and US address deposit insurance. 

The reported $42bn bank run on SVB shines a light on the current compensation limits and speed in which it is paid out in the UK in comparison to the US. 

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