BKLM331125 | Chargeable equity and liabilities: excluded equity and liabilities: protected deposits: government guarantee schemes

Paragraph 29(7) of Schedule 19

Deposits can also be treated as protected deposits if those deposits are explicitly guaranteed by a non-UK, State-run guarantee or insurance scheme. That is, one run by a national government which guarantees to compensate depositors for losses on their deposits.

Where a country has previously undertaken a resolution mechanism, this does not guarantee that there is an explicit deposit guarantee scheme operating. As such this is not sufficient justification for the deposit to be protected for the purpose of the bank levy. There must be an explicit current scheme which meets the criteria. Current is taken to mean at the end of the chargeable period determined by paragraphs 4 and 5 of Schedule 19.