IMA wants new deposit insurance system after Rock debacle

The IMA has spoken out after HM Treasury, the FSA and the Bank of England announced their intention to maintain a well-functioning banking system in the wake of the Northern Rock debacle. It says customers must be confident they can have access to their funds without delay regardless to what is happening to the bank involved, using a system similar to the Federal Insurance Deposit scheme in the United States. The IMA praised the Financial Services Compensation Scheme (FSCS) but says the process involved can be drawn-out and is “manifestly unsuitable” for providing depositors with their ...