Secondary navigation

Banking Act 2009

Type of Bill:
Government Bill
Sponsors:
Alistair Darling
HM Treasury
Lord Davies of Oldham
HM Treasury

Progress of the Bill

Bill started in the House of Commons

  1. House of Commons
    1. 1st reading
    2. 2nd reading
    3. Committee stage
    4. Report stage
    5. 3rd reading
  2. House of Lords
    1. 1st reading
    2. 2nd reading
    3. Committee stage
    4. Report stage
    5. 3rd reading
  3. Consideration of Amendments
  4. Royal Assent

Last event

Act of Parliament

House Act Date
Commons Banking Act 2009 c.1 | PDF version, 632KB 16.03.2009

Latest news on the Banking Act 2009

Following agreement by both Houses on the text of the Bill it received Royal Assent on 12 February. The Bill is now an Act of Parliament.

Lords Hansard: Banking Bill

The identical Banking (No. 2) Bill was withdrawn to allow this Bill to proceed in its place.

Summary of the Banking Act 2009

The Bill establishes for the first time a permanent statutory regime for dealing with failing banks, amends related current legislation and makes new provisions for the governance of the Bank of England.

Key areas

  • establishes a permanent special resolution regime, providing the authorities with tools to deal with banks that get into financial difficulties. The regime has three options - transfer to a private sector purchaser, transfer to a bridge bank and transfer to temporary public sector ownership
  • creates a new bank insolvency procedure
  • provides for a new bank administration procedure for use where there has been a partial transfer of business from a failing bank
  • amends the Financial Services and Markets Act 2000 to enable changes to the Financial Services Compensation Scheme to be made, which fall outside the scope of the existing legislation
  • formalises the Bank of England’s role in the oversight of inter-bank payment systems
  • repeals legislation governing the issue of banknotes in Scotland and Northern Ireland, limits their issuance to existing issuers and provides for new reserve requirements
  • makes provisions relating to the governance of the Bank of England, including a new statutory financial stability objective and the establishment of a Financial Stability Committee.

Stay up to date

Keep up to date with the progress of Bills going through Parliament. Sign up for email alerts or use our RSS feeds.

Related information

Guide to the passage of a Bill

Find out what happens at each stage of a Public Bill’s journey through Parliament with the Passage of a Bill guide.

When does a Bill become law?

Explanation of what happens after Bills have been passed, and when laws may change.

Human rights

Do you have expertise or a special interest in human rights? The Joint Committee on Human Rights scrutinises the human rights implications of Government Bills.