Banking Act | Special Resolution Regime | Risk Reduction Initiatives | Payment Systems Oversight | International Financial Architecture | Crisis Management

The Banking Act provides a permanent set of tools that allows the tripartite authorities to resolve a distressed bank or building society in an orderly way. These powers will help reduce the impact of bank failure on financial stability and bank customers.

The Act will increase the responsibilities, powers and role of the Bank:

• creating a new Special Resolution Regime (SRR) for dealing with distressed banks
• giving the Bank a statutory financial stability objective and with it creating a Financial Stability Committee to advise on financial system matters
• formalising the Bank's payment system oversight role
• creating a new framework for issuance of Scottish and Northern Ireland banknotes to be overseen by the Bank

These changes, beginning with the introduction of the SRR which took place on 21 Febuary, will be implemented in stages during 2009.

The Act draws on an extensive consultation launched by The Chancellor during 2008.

Key Resources

	Banking Act 2009 Download PDF (632k)
	Financial Stability and Depositor Protection: Special resolution regime Published jointly by HM Treasury, the Financial Services Authority and the Bank of England on 22 July 2008. Download PDF (694k)
	Financial Stability and Depositor Protection: Further Consultation Published jointly by HM Treasury, the Financial Services Authority and the Bank of England (the Authorities). July 2008 Download PDF (1.3mb)
	Financial Stability and Depositor Protection: Strengthening the Framework A consultation on proposals for strengthening the current framework for financial stability and protecting depositors has today been launched by the Chancellor of the Exchequer. The consultation document is published jointly by HM Treasury, the Financial Services Authority and the Bank of England (the Authorities). January 2008 Download PDF (3mb)
	Banking Reform - Protecting Depositors: a discussion paper Published jointly by HM Treasury, the Financial Services Authority and the Bank of England. October 2007 Download PDF (485k)