Banking Act 2009

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Version Superseded: 31/12/2023

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1OverviewU.K.

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(1)The purpose of the special resolution regime for banks is to address the situation where all or part of the business of a bank has encountered, or is likely to encounter, financial difficulties.

(2)The special resolution regime consists of—

(a)the [F1five] stabilisation options,

(b)the bank insolvency procedure (provided by Part 2), and

(c)the bank administration procedure (provided by Part 3).

[F2(3)The [F3five] “stabilisation options” are—

(a)transfer to a private sector purchaser (section 11),

(b)transfer to a bridge bank (section 12),

[F4(ba)transfer to an asset management vehicle (section 12ZA),]

(c)the bail-in option (section 12A), and

(d)transfer to temporary public ownership (section 13).]

(4)Each of the [F5five] stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are—

[F6(za)the resolution instrument powers (sections 12A(2) and 48U to 48W),]

(a)the share transfer powers (sections 15, 16, 26 to 31 and 85), and

(b)the property transfer powers (sections 33[F7, 41A] and 42 to 46).

[F8(c)the third country instrument powers (sections 89H to 89J).]

(5)Each of the following has a role in the operation of the special resolution regime—

(a)the Bank of England,

(b)the Treasury,

[F9(c)the Prudential Regulation Authority, and

(d)the Financial Conduct Authority.]

(6)The Table describes the provisions of this Part.

Sections	Topic
Sections 1 to 3	Introduction
[F10Sections 3A and 3B]	[F10Pre-resolution powers]
Sections 4 to 6	Objectives and code
[F10Sections 6A to 6D]	[F10Mandatory write-down, conversion etc of capital instruments]
[F10Section 6E]	[F10Valuation before mandatory write-down or stabilisation action]
Sections 7 to 10	Exercise of powers: general
Sections 11 to 13	The stabilisation options
Sections 14 to 32	Transfer of securities
Sections 33 to [F1148A]	Transfer of property
[F10Sections 48B to [F1248WA]]	[F10Bail-in option]
[F10Sections 48X and 48Y]	[F10Replacement of provisional valuation]
[F10Section 48Z]	[F10Termination rights etc]
Sections 49 to 62	Compensation
[F10Section 62A]	[F10Independent valuer]
[F10Sections 62B to 62E]	[F10Resolution administrator]
Sections 63 to 75	Incidental functions
Sections 76 to [F1381A]	Treasury
[F14Sections 81B to 83]	[F14Groups]
[F10Sections 83ZA to 83Z2]	[F10Information and enforcement]
[F15Section 83A]	[F15Banks not regulated by the PRA]
Sections 84 to 89	Building societies, &c.
[F16Section 89A]	[F16Investment firms]
[F17Sections 89B to 89G]	[F18Recognised central counterparties]
[F10Sections 89H to 89J]	[F10Third-country resolution actions]
[F19Section 89JA	Resolution of UK branches of third-country institutions]