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Bank Services

Volume 481: debated on Monday 27 October 2008

To ask the Chancellor of the Exchequer if he will take steps to ensure that British business clients of the Landsbanki bank are able to continue to draw on their overdraft facility notwithstanding the Government's freezing of that bank's assets. (228818)

[holding answer 21 October 2008]: HM Treasury has granted a licence to allow Landsbanki London branch to carry out commercial finance, asset based lending and capital markets and fixed income activities, as well as operating customers' business accounts.

HM Treasury has issued a series of notices providing guidance in relation to the operation of the Landsbanki Freezing Order 2008. These notices confirm that the Freezing Order is specific to Landsbanki and does not freeze the funds of any other Icelandic banks. It does not affect Icelandic companies with no links to Landsbanki. HM Treasury notices can be found at

http://www.hm-treasury.gov.uk/fin_sanctions_landsbanki.htm.

To ask the Chancellor of the Exchequer what protection is available for UK depositors in Kaupthing Isle of Man banks. (229059)

[holding answer 22 October 2008]: Arrangements for depositors in banks in the Isle of Man are a matter for the Government of the Isle of Man.

Deposits with Kaupthing, Singer and Friedlander, Isle of Man, will be subject to the Isle of Man deposit compensation scheme.

In line with usual constitutional arrangements, the Government will represent the Crown Dependencies in its negotiations with the Icelandic authorities.