After a good bit of prodding by the UK, the Bank of Cyprus joined our Financial Services Compensation Scheme (FSCS) to protect 50,000 British savers from Greek exposure. It had about £1b over here which was previously covered by their version of FSCS (written on the back of a fag packet). It did that, at the time, to reassure UK savers that their money would be safe if it ever collapsed, so the SBA angle is interesting. But this isn't a
collapse of course not.. no, its a 'tax' - the country hasn't collapsed
at all).
I don't think that Cyprus has any option though - it forgot the basics of growth and if you take shortcuts, there is always a payback. This crisis just accentuates the distrust (mistrust?) and shreds decades of financial integration. It is interesting that on the surface at least, the Germans have been arguing that this is a way of getting some of that laundered Russian money. In that case, chase the guilty to get 100% of it?
I don't imagine that many serving out there who will be too badly exposed, unless they have loans/funds parked in cash before buying a car etc. Like you, I didn't have too much money in the Pop at any one time - the bank manager used to call out across a crowded bank 'Hey, you.. when are you going to start banking with
us again eh?'.
But maybe we preferred our banks like that; small, comfortable and normal.
