Banking Act 2009
- Type of Bill:
- Government Bill
- Alistair Darling
- Lord Davies of Oldham
Progress of the Bill
Bill started in the House of Commons
- House of Commons
- House of Lords
- Royal Assent
- Royal Assent 12 February, 2009 | 12.02.2009
Act of Parliament
|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The identical Banking (No. 2) Bill was withdrawn to allow this Bill to proceed in its place.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 2009The 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.
- 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.
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