This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-21927715

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Cyprus banks say UK deposits are safe Bank of Cyprus and Laiki reassure UK customers
(about 1 hour later)
Customers of two Cypriot banks based in the UK are being reassured that their money is safe. Two Cypriot banks based in the UK have sought to reassure customers about the security of their deposits.
The Cyprus Popular Bank or Laiki Bank, which has 13,000 customers in the UK, said it was trading normally. The Bank of Cyprus UK, which has 50,000 UK customers, said there would be no effect on deposits, as it is a UK bank and subject to UK financial regulation.
It said deposits would be guaranteed and customers were free to withdraw what they needed. But the Cyprus Popular Bank or Laiki Bank, which has 13,000 account holders in Britain, is not incorporated under UK banking law.
The Bank of Cyprus UK, which has 50,000 UK customers, said there would be no effect on deposits, as it is a UK bank, and subject to UK financial regulation. It said deposits would be guaranteed at least up to £85,000.
Customers who have accounts in Cyprus, however, are in danger of losing a proportion of their deposits over 100,000 euros. Following the agreement between EU finance ministers and the Cyprus government, anyone with savings above 100,000 euros (£85,150) in Cyprus may lose a proportion of their money.
The government of Cyprus will only guarantee deposits up to that amount, following the bail-out agreement with EU finance ministers. So it is not yet clear whether customers with more than £85,000 in their Laiki accounts in the UK may have to forfeit some of their savings.
A spokesman for the bank said they were waiting to hear whether sums greater than that limit would be guaranteed. But otherwise, he said, they were trading normally.
Cash availableCash available
The Bank of Cyprus (UK) is separately capitalised from its parent company and its customers are included within the UK Financial Services Compensation Scheme.The Bank of Cyprus (UK) is separately capitalised from its parent company and its customers are included within the UK Financial Services Compensation Scheme.
"There is no effect on deposits with Bank of Cyprus UK Limited, which is a UK bank," said a spokesman."There is no effect on deposits with Bank of Cyprus UK Limited, which is a UK bank," said a spokesman.
The situation with customers of Laiki Bank is different, as it is not incorporated within the UK and is not part of the UK compensation scheme, which guarantees deposits up to £85,000. The situation with customers of Laiki Bank is different, as it is not part of the UK compensation scheme, which guarantees deposits up to £85,000.
Nevertheless, it has insisted that customers can take out as much cash as necessary, if withdrawals are allowed on their account.Nevertheless, it has insisted that customers can take out as much cash as necessary, if withdrawals are allowed on their account.
"We have money available to give out. We have a sea of cash," said a spokesperson."We have money available to give out. We have a sea of cash," said a spokesperson.
Nevertheless, it admitted that discussions were continuing with the Financial Services Authority, the Bank of England and Laiki's parent company in Cyprus.Nevertheless, it admitted that discussions were continuing with the Financial Services Authority, the Bank of England and Laiki's parent company in Cyprus.
Should UK depositors lose money, the government would have to decide whether to compensate them directly.Should UK depositors lose money, the government would have to decide whether to compensate them directly.
After the Icelandic bank Landsbanki collapsed in October 2008, both the British and Dutch governments decided to compensate more than 340,000 customers who had lost money.After the Icelandic bank Landsbanki collapsed in October 2008, both the British and Dutch governments decided to compensate more than 340,000 customers who had lost money.