Laiki Bank deposits transferred to Bank of Cyprus - Banking - News - Moneyfacts


Laiki Bank deposits transferred to Bank of Cyprus

Laiki Bank deposits transferred to Bank of Cyprus

Category: Banking

Updated: 05/04/2013
First Published: 02/04/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Customers of the UK branch of Laiki Bank will have their savings deposits transferred to the wholly-owned UK subsidiary of Bank of Cyprus Public Company Limited.

In a statement, the Prudential Regulation Authority (PRA) announced that around 15,000 accounts with balances totalling an estimated £270 million will be moved to the Bank of Cyprus UK, allowing customers of the bank's UK arm to access their funds as usual.

The move will mean customers are excluded from any levies or withdrawal restrictions imposed on Cypriot banks as a result of the European bailout to save the country from going bankrupt last month.

The transferring of deposits means that savers' money up to the value of £85,000 will now be covered under the UK Financial Services Compensation Scheme (FSCS).

Laiki UK branch customers' mortgage and credit card advances will continue to be administered by the Laiki UK branch on behalf of Bank of Cyprus Public Company Limited.

Those with outstanding overdrafts will not have their money transferred and will instead have their accounts frozen, although it is understood that plans are being made to allow customers to apply for new overdrafts with Bank of Cyprus UK.

What next?

Find out how to choose the best bank account by reading our guides to help you open and manage your bank account.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

More people are switching current accounts

Competition in the current account market remains intense, which means if you’re not happy with your account for any reason, now’s a great time to switch! Happily, more and more people seem to be getting in on the switching action...

Financial services complaints continue to fall

Many people feel dissatisfied with their financial providers at times, but happily, it looks as though the most serious complaints are becoming less and less common.

Contactless spending hits yet another record

Contactless spending is going from strength to strength, hitting new records on a seemingly monthly basis - and it’s just broken yet another one, with monthly contactless spending having passed the £2bn mark for the first time.