The limit for firms authorised by the Prudential Regulation Authority (PRA) is currently set at £75,000 and would rise from 30th January 2017.
However, firms would have until 30th June 2017 to implement the necessary changes.
The limit had previously been £85,000 for a period of almost five years until 3rd July 2015.
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It was then reduced to £75,000 because of the EU Deposit Guarantee Schemes Directive, which required non-euro member states of the European Union to adjust their deposit protection limits to the equivalent of €100,000.
This directive requires adjustments to the limits outside of the five-year review cycle when there are unforeseen events such as currency fluctuations.
Due to the effects of the EU referendum result on the GBP/EUR exchange rate, the PRA has deemed that an adjustment is required.
The PRA has said that it will continue to monitor exchange rates.
However, PRA confirmed that no further adjustments will be made unless there are further unforeseen circumstances.
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