London Scottish Bank enters administration

LONDON (Reuters) - London Scottish Bank said on Monday it had gone into administration after suffering a shortfall in its capital reserves.

In a statement, the Treasury said no savers would lose money as a result of LSB's collapse, even if their savings exceed the 50,000 pound ceiling set by the Financial Services Compensation Scheme.

"The Chancellor has put in place arrangements to ensure that all eligible retail depositors in London Scottish Bank will receive their money in full, including those with balances above the current 50,000 pound FSCS limit," the Treasury said.

LSB, which focuses on unsecured consumer lending and debt collection, said it had sought an administration order on Sunday, and that audit firm Ernst & Young had been appointed as administrator.

The company added that an unspecified number of suitors were still interested in buying the company, but that there was no certainty that an offer would materialise.

(Reporting by Myles Neligan; Editing by Mike Nesbit)