Kent Reliance annual results

MarkyMarkD

See here: http://www.cashquestions.com/forum/showthread.php?t=9207

Record profits for Kent Reliance, despite the impact of the FSCS levy to bail out Bradford & Bingley.

opinions4u

£1m for FSCS out of £8m profits?

And that's only to cover interest to the FSCS.

When the capital needs repaying smaller players in the market are going to be wiped out.

The

opinions4u

£1m for FSCS out of £8m profits?

And that's only to cover interest to the FSCS.

When the capital needs repaying smaller players in the market are going to be wiped out.

The return to profitability of the bigger players will also be restricted.

MarkyMarkD

But the capital won't need repaying, as it will be met from the gradual redemption of B&B's mortgages. Or at least, that is the theory.

If there is a surplus on the mortgages (which there should be, given that B&B aren't current paying anything to fund them) then that should come back to the FSCS and be returned to the FSCS members via a reverse levy.

Whilst I don't disagree that weaker players in the savings market are in severe risk of being wiped out by the FSCS, it's important to note that precisely for that reason there are limits on the size of the levy in each financial year. So it's likely that only organisations which weren't generating profits themselves at all - maybe because of extensive loan write-offs - would be unable to meet their levy payments.