8 November 2007
New laws are set to be introduced by the government in response to consumer concerns over bank deposit security.
The announcement, covered by the Queen's speech, is aimed at shoring-up the safeguards for account holders in the event of a bank's collapse, as nearly happened with lenders Northern Rock earlier in the year.
Northern Rock itself only survived thanks to a massive injection of cash from the Treasury - following scenes of hundreds of customers queuing up outside of branches to clear their accounts, unsure that their money was safe.
Quoted by the BBC, the Queen said: "Legislation will be brought forward to protect depositors and ensure confidence in the banking system."
The announcement follows previous statements from the chancellor of the exchequer, Alistair Darling, that the system of customer compensation for depositors in failed banks is set to be beefed-up.
Welcoming the announcement, the British Bankers' Association said: "We are…looking forward to working with the government over the consultation paper and the legislation when it comes."
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