Clause 155
Banking Bill
9:00 am
Roger Gale (North Thanet, Conservative)
With this it will be convenient to discuss the following: New clause 1—Objectives of the compensation scheme for depositors—
‘(1) This section sets out the objectives for the compensation scheme for depositors.
(2) Objective 1 is to maintain customers’ confidence in the UK banking system regardless of whether the bank is incorporated in the UK or another EEA country.
(3) Objective 2 is to be able to make payments to depositors within seven days and to have eligibility criteria, qualification processes and information requirements which facilitate that.
(4) Objective 3 is to ensure that there are compensation arrangements for each bank brand.
(5) Objective 4 is to require that the scheme pays customers their gross balance and that any amounts due from customers are collected in the usual way.’.
New clause 2—Compensation payable to depositors—
‘(1) Each depositor will be entitled to receive from the manager of the scheme referred to in section [Objectives of the compensation scheme for depositors] a sum which is the lower of—
(a) the deposit protection amount; and
(b) the gross balance held by the person.
(2) The “deposit protection amount” is £50,000.
(3) The Treasury may by order amend the figure in subsection (2).
(4) An order under this section may not be made unless a draft statutory instrument containing such an order has been laid before, and approved by a resolution of, each House of Parliament.’.