Skip to main content

Bank Services

Volume 482: debated on Tuesday 11 November 2008

To ask the Chancellor of the Exchequer on what date (a) his Department, (b) the Bank of England and (c) the Financial Services Authority first (a) was informed of and (b) reported on the financial vulnerability of Icelandic banking institutions. (228197)

[holding answer 17 October 2008]: The FSA intensified its supervision of all retail deposit-taking by Icelandic banks (including through increased contact with firms, more frequent visits and enhanced reporting requirements) from the beginning of 2008. As the economic situation deteriorated during the year and particularly since September the FSA has worked increasingly intensively with the banks concerned.

As the memorandum of understanding between HM Treasury, the Bank of England and the FSA sets out, the FSA informs the Bank of England and HM Treasury of its concerns on a regular basis.