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Banking Act 2009

Government Bill

Originated in the House of Commons, Sessions 2007-08, 2008-09

Last updated: 20 November 2009 at 13:33

See full passage


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.

Sponsoring departments

HM Treasury
Mr Alistair Darling
Labour, Edinburgh South West
HM Treasury
Lord Davies of Oldham
Labour, Life peer

Current version of the Bill

Bill passage

Bill started in the House of Commons
1st reading
2nd reading
Committee stage
Report stage
3rd reading
Bill in the House of Lords
1st reading
2nd reading
Committee stage
Report stage
3rd reading
Final stages
Consideration of amendments
Royal Assent
In progress
Not applicable
Not yet reached