Canadian Dollar Down as Crude Oil Prices Slides Lower

        By Jason Douglas

        LONDON--The maximum amount depositors in a failed British bank can claim back from the state will fall from 2016, following an increase in the value of the pound, regulators said Friday.

        The Prudential Regulation Authority, the arm of the Bank of England that regulates Britain's banks, said that from Jan. 1, the maximum amount insured under the U.K.'s Financial Services Compensation Scheme will be reduced to 75,000 pounds ($117,000) from GBP85,000 currently.

        The deposit-insurance limit is reviewed every five years and according to a European Union-wide rule is kept at the sterling equivalent of 100,000 euros ($110,700). The pound has gained against the euro since 2010, in part due to faster growth in the U.K. than in the neighboring currency union.

        Separately, the U.K. Treasury said the change would have happened sooner, but it had put in place legislation to ensure the current GBP85,000 level of deposit insurance stayed in place until the end of the year.

        The PRA added that from Friday depositors whose bank balances are temporarily pushed above the insurance limit, such as those in receipt of the proceeds of a house sale or divorce settlement, for example, would be covered for up to GBP1 million for six months to enable them to put the funds elsewhere.

        Write to Jason Douglas at jason.douglas@wsj.com

        (END) Dow Jones Newswires

        July 03, 2015 07:53 ET (11:53 GMT)

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