But FSCS says insurers and brokers could face higher levies after three years.
Insurers and brokers will not have to pay for the nationalisation of Bradford & Bingley for at least three years, the Financial Services Compensation Scheme (FSCS) has confirmed.
But the compensation body was unable to say how much, if any, they would have to contribute after that.
Last week, the government stepped in to protect savers with a £14bn loan for the former building society.
The loan from the Bank of England will be repaid in part through higher FSCS levies on financial services firms.
For the first three years, only the interest on the loan will be recovered, with the first payment estimated at £450m and due in September 2009. The annual interest payment will amount to £900m.
After this period a repayment schedule for the principal loan would be implemented, the FSCS said.
A spokesman for the FSCS confirmed that the interest payments over the first three years would be recovered from banks and building societies.
Under FSCS funding rules, the body can recover up to £1.84bn a year from deposit-taking firms.
But the FSCS was unable to say whether insurers and brokers would face increased levies once the repayment schedule was implemented.
If the levy cap for deposit-taking firms is breached, the FSCS can seek payment from other financial services businesses, including insurers and brokers.
“It is too early to say [what the schedule will look like] and whether we will need to dip into the general retail pool,” the spokesman said.
He added that the FSCS expected the total amount that would need to be repaid to be “substantially less” than the £14bn borrowed. The loan would also be repaid through recoveries from B&B, such as repayments on its mortgages and the sale of assets.
The IIB has warned that brokers could go bust if they were forced to pay a huge FSCS levy, as they could not pass on the cost to consumers.
Barbara Bradshaw, IIB chief executive, said: “Insurance companies can easily hike premiums in order to recoup any increase in the FSCS levy. However, insurance brokers have no such ability and could end up having to pay huge levies out of their profits. This could make the difference between survival and going to the wall for some.”
The ABI said insurers were furious that they could be forced to pay for the nationalisation of B&B and premiums could rise as a result..
