The losses would be shared by clients in proportion to the share of money held with the failed bank. Funds lost in this way may be compensated for under the Financial Services Compensation Scheme (FSCS) up to a limit of £85,000 per person, per institution, subject to other balances held with the bank in question.
Find out more about what the FSCS covers and who is eligible to claim at their website www.fscs.org.uk.