15,000 UK customers to escape Cyprus levy

Around 15,000 savers in the UK arm of stricken Cypriot bank Laiki will see their deposits protected under British rules and will escape the Cyprus banking levy.

Branch of the Cypriot bank, Laiki, in Palmers Green, north London Credit: Press Association

The Bank of England's new City watchdog, the Prudential Regulation Authority says around £270 million in deposits from Laiki Bank UK had been transferred to Bank of Cyprus UK. It will come under the UK compensation scheme, guaranteeing up to £85,000 per saver.

Customers, including those with current accounts in credit, will not be hit by any Cypriot levy on their accounts - potentially as high as 60% for large depositors - after the transfer and will be able to access their accounts as normal.