Treasury backs down on deposit protection for savers - reports

clock •

The Treasury is preparing to water down a key recommendation in the Vickers report that would protect savers in the event of a bank going bust, according to reports.

The Vickers report called for retail depositors to be paid back before all other creditors if a bank collapses. Investors and banks have argued that could risk destroying the market for bank debt and cause corporate deposits to flee the UK. The argument is one the Treasury finds convincing, according to sources familiar with its thinking, City AM reports. As a result it plans to drop the recommendation on "depositor preference"  from the final version of Vickers implemented by the government, according to sources, on the grounds savers with up to £85,000 in the bank are already pro...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Watch Professional Adviser's Working Lunch with Baillie Gifford - Emerging Future: Rethinking the World's Growth Engine

Watch Professional Adviser's Working Lunch with Baillie Gifford - Emerging Future: Rethinking the World's Growth Engine

Catch up on the discussion

Professional Adviser
clock 13 October 2026 • 1 min read
Fifty years after 'Bogle's Folly', what comes next for financial advice?

Fifty years after 'Bogle's Folly', what comes next for financial advice?

'Indexing will continue to grow, but the wrapper through which investors access it will change'

Gillian Hepburn
clock 12 October 2026 • 4 min read
Chris Justham: Why the industry must 'entertain and engage' investors

Chris Justham: Why the industry must 'entertain and engage' investors

‘We can’t just offer them a dry cracker and ask them to chew it down’

Chris Justham
clock 07 October 2026 • 3 min read