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Banks: Finance

Volume 486: debated on Thursday 15 January 2009

To ask the Chancellor of the Exchequer what estimate he has made of the cost to (a) building societies and (b) banks of the management expenses bill levied by the Financial Services Compensation Scheme in order to service its borrowings in respect of Bradford and Bingley and the Icelandic banks (i) in total and (ii) as a percentage of (A) the pre-tax profits for the last three financial years, (B) the retail deposit balance sheet and (C) the total balance sheet of each type of organisation. (247179)

The Financial Services Compensation Scheme is responsible for setting its levies subject to upper limits set in rules made by the Financial Services Authority (FSA). The FSA has published on its website:

a letter sent to the British Bankers’ Association, the Building Societies Association and the Association of Foreign Banks on 31 December 2008 setting out some detailed information regarding the levies payable following recent deposit-taker defaults.