MEPs vote to increase protection of bank deposits

Consumers and small businesses can be assured that their deposits will be better protectedshould their banks fail after Conservative MEPs voted in favour of improvements in the coverage of deposits.
The initial proposals from the European Commission increased the guarantees from 20,000euros to 50,000euros, but MEPs raised this even further to 100,000euros by December. In addition, in the event of a bank failing, the new legislation will require that all funds are now repaid within 14 days as opposed to 3 months under the previous system.
In the European Parliament's report, MEPs also voted to add small businesses to the deposit guarantee scheme as they were not included in the initial proposals.