Government Bank Guarantee UK
Like Ireland, U.K. banks rely heavily on now-frozen money markets for funding, and deteriorating house prices also put strains on the lenders’ capital. In the wake of the run on Northern Rock last year, the U.K. government already has increased the protection it provides on deposits to 35,000 pounds, or about $63,000. That threshold is expected to be raised to 50,000 pounds shortly.