Banking Act 1987
Part I Regulation of Deposit-Taking Business
The Bank of England and the Board of Banking Supervision
1 Functions and duties of the Bank of England.
2 The Board of Banking Supervision.
Restriction on acceptance of deposits
3 Restriction on acceptance of deposits.
4 Exempted persons and exempted transactions.
5 Meaning of “deposit”.
6 Meaning of “deposit-taking business”.
7 Power to amend definitions.
Authorisations
8 Applications for authorisation.
9 Grant and refusal of authorisation.
10 Notice of grant or refusal.
11 Revocation of authorisation.
12 Restriction of authorisation.
12A Revocation or restriction on information from supervisory authority.
13 Notice of revocation or restriction.
14 Mandatory revocation and restriction in cases of urgency.
15 Surrender of authorisation.
16 Statement of principles.
17 Information as to authorised institutions.
18 False statements as to authorised status.
Directions
19 Directions to institutions.
20 Notification and confirmation of directions.
Objections to controllers
21 Notification of new or increased control.
22 Objection to new or increased control.
23 Objection by direction of the Treasury.
24 Objection to existing shareholder controller.
25 Contraventions by controller.
26 Restrictions on and sale of shares.
Appeals
27 Rights of appeal.
28 Constitution of tribunals.
29 Determination of appeals.
30 Costs, procedure and evidence.
31 Further appeals on points of law.
Invitations to make deposits
32 Advertisement regulations.
33 Advertisement directions.
34 Unsolicited calls.
35 Fraudulent inducement to make a deposit.
Information
36 Notification of change of director, controller or manager.
37 Notification of acquisition of significant shareholding.
38 Reports of large exposures.
39 Power to obtain information and require production of documents.
40 Right of entry to obtain information and documents.
Investigations
41 Investigations on behalf of the Bank.
42 Investigation of suspected contraventions.
43 Powers of entry in cases of suspected contraventions.
44 Obstruction of investigations.
Accounts and auditors
45 Audited accounts to be open to inspection.
46 Notification in respect of auditors.
47 Communication by auditor etc. with the Bank.
Unauthorised acceptance of deposits
48 Repayment of unauthorised deposits.
49 Profits from unauthorised deposits.
Part II The Deposit Protection Scheme
The Board and the Fund
50 The Deposit Protection Board.
51 The Deposit Protection Fund.
Contributions to the Fund
52 Contributory institutions and general provisions as to contributions.
53 Initial contributions.
54 Further contributions.
55 Special contributions.
56 Maximum and minimum contributions.
57 Deposit base of transferee institutions.
Payments out of the Fund
58 Compensation payments to depositors.
59Meaning of insolvency etc.
60 Protected deposits.
61 Trustee deposits, joint deposits etc.
62 Liability of institution in respect of compensation payments.
Repayments in respect of contributions
63 Repayments in respect of contributions.
Supplementary provisions
64 Borrowing powers.
65 Power to obtain information.
66 Tax treatment of contributions and repayments.
Part III Banking Names and Descriptions
67 Restriction on use of banking names.
68 Exemptions from s. 67.
69 Restriction on use of banking descriptions.
70 Power to object to institution’s names.
71 Effect of notices under s. 70 and appeals.
72 Registration of substitute corporate name by oversea company.
73 Offences under Part III.
Part IV Overseas Institutions with Representative Offices
74 Meaning of “overseas institution” and “representative office”.
75 Notice of establishment of representative office.
76 Power to object to names of overseas institutions.
77 Effect of notices under s. 76 and appeals.
78 Registration of substitute corporate name by overseas institution.
79 Duty to provide information and documents.
80 Regulations imposing requirements on overseas-based banks.
81 Offences under Part IV.
Part V Restriction on Disclosure of Information
82 Restricted information.
83 Disclosure for facilitating discharge of functions by the Bank.
84 Obstruction of investigations.
85 Objection by direction of the Treasury.
86 Information supplied to Bank by relevant overseas authority etc.
87 Notification of acquisition of significant shareholding.
Part VI Miscellaneous and Supplementary
88 Exclusion of authorised institution’s agreements from Consumer Credit Act 1974.
89 Electronic transfer of funds.
90 Disclosure of transactions by authorised institutions with chief executives and managers.
91 Powers for securing reciprocal facilities for banking and other financial business.1986 c. 60.
92 Winding up on petition from the Bank.
93 Injunctions.
94 False and misleading information.
95 Restriction of Rehabilitation of Offenders Act 1974.
96 Offences.
97 Summary proceedings.
98 Offences committed by unincorporated associations.
99 Service of notices on the Bank.
100 Service of other notices.
101 Evidence.
102 Powers for securing reciprocal facilities for banking and other financial business.
103 Municipal banks.
104 Scottish 1819 savings banks.
105 Meaning of “director”, “controller”, “manager”, and “associate”.
105A Meaning of related company.
106 Interpretation.
107 Transitional provisions.
108 Minor and consequential amendments, repeals and revocations.
109 Northern Ireland.
110 Short title and commencement.
SCHEDULES
SCHEDULE 1 The Board of Banking Supervision
Terms of office
1(1) The independent members of the Board shall hold office...
Removal from office
2An independent member may be removed by the Bank with...
Increase in number of members
3(1) The Treasury may, after consultation with the Bank, by...
Proceedings
4(1) The quorum for a meeting of the Board shall...
Facilities, remuneration and allowances
5The Bank shall make such provision as it thinks necessary...
SCHEDULE 2 Exempted Persons
1The central bank of a member State other than the...
2The National Savings Bank.
3A penny savings bank.
4A municipal bank.
5A building society incorporated (or deemed to be incorporated) under...
6(1) A friendly society within the meaning of section 7(1)(a)...
7A society registered under either of the Acts mentioned in...
8(1) Any institution which is for the time being authorised...
9A loan society whose rules are certified, deposited and enrolled...
10A credit union within the meaning of the Credit Unions...
11A body of persons certified as a school bank by...
12A local authority.
13Any other body which by virtue of any enactment has...
14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15The European Atomic Energy Community.
16The European Coal and Steel Community.
17The European Economic Community.
18The European Investment Bank.
19The International Bank for Reconstruction and Development.
20The International Finance Corporation.
21The International Monetary Fund.
22The African Development Bank.
23The Asian Development Bank.
24The Caribbean Development Bank.
25The Inter-American Development Bank.
26The European Bank for Reconstruction and Development.
SCHEDULE 3 Minimum Criteria for Authorisation
Directors etc. to be fit and proper persons
1(1) Every person who is, or is to be, a...
Business to be directed by at least two individuals
2At least two individuals effectively direct the business of the...
Composition of board of directors
3In the case of an institution incorporated in the United...
Business to be conducted in prudent manner
4(1) The institution conducts, or, in the case of an...
Integrity and skill
5The business of the institution is or, in the case...
Minimum net assets
6(1) The institution will at the time when authorisation is...
SCHEDULE 4 The Deposit Protection Board
Constitution
1(1) The Board shall consist of three ex officio members,...
Expenses
2The Board may pay to its members such allowances in...
Proceedings
3(1) The Board shall determine its own procedure, including the...
4(1) The fixing of the common seal of the Board...
Accounts, audit and annual report
5(1) The Board may determine its own financial year.
SCHEDULE 5 Transitional Provisions
First report by Bank of England
1If this Act comes into force in the course of...
Existing recognised banks and licensed institutions
2(1) Any institution (within the meaning of this Act) which...
Conditional licences
3(1) Any conditional licence in force under the former Act...
Applications subject to appeal
4(1) Where an application for recognition or a licence under...
Revocation
5(1) Where the Bank has given an institution a notice...
Directions
6(1) The repeal of the former Act shall not affect...
Information and investigations
7(1) The repeal of the former Act shall not affect...
Members of Deposit Protection Board
8Any person who is an ordinary member or alternate member...
Initial contributions by excluded institutions
9(1) On or as soon as possible after the coming...
Maximum contributions
10For the purposes of section 56(3) of this Act there...
Insolvencies before commencement of Part II
11This Act does not affect the operation of sections 28...
Borrowing
12Any sum borrowed by virtue of section 26(3) of the...
Use of banking names
13(1) Subject to sub-paragraph (2) below, section 67 of this...
Restriction on disclosure of information
14In section 82(1) of this Act the reference to information...
SCHEDULE 6 Minor and Consequential Amendments
The Bankers’ Books Evidence Act 1879
1(1) For subsection (1)(a) of section 9 of the Bankers’...
The Agricultural Credits Act 1928
2(1) In the definition of “Bank” in section 5(7) of...
The Agricultural Credits (Scotland) Act 1929
3(1) In the definition of “Bank” in section 9(2) of...
The Tribunals and Inquiries Act 1971
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Solicitors Act 1974
5In paragraph (a) of the definition of “bank” in section...
The Home Purchase Assistance and Housing Corporation Guarantee Act 1978
6In paragraph 7 of Part I of the Schedule to...
The Credit Unions Act 1979
7(1) In section 8 of the Credit Unions Act 1979...
The Crown Agents Act 1979
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Solicitors (Scotland) Act 1980
9In section 35(2) of the Solicitors (Scotland) Act 1980 for...
The British Telecommunications Act 1981
10In the definition of “bank” in section 67(4) of the...
The Supreme Court Act 1981
11In section 40(6) of the Supreme Court Act 1981 for...
The Housing (Northern Ireland) Order 1981
12In Schedule 10 to the Housing (Northern Ireland) Order 1981...
The Finance Act 1982
13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Duchy of Cornwall Management Act 1982
14In section 6 of the Duchy of Cornwall Management Act...
The County Courts Act 1984
15In the definition of “deposit-taking institution” in section 147(1) of...
16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Inheritance Tax Act 1984
17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Companies Act 1985
18(1) In section 209(5)(a)(i) of the Companies Act 1985 for...
The Trustee Savings Banks Act 1985
19In paragraph 11 of Schedule 1 to the Trustee Savings...
The Bankruptcy (Scotland) Act 1985
20In section 73(1) of the Bankruptcy (Scotland) Act 1985 for...
The Housing Act 1985
21In the definition of “bank” in section 622 of the...
The Housing Associations Act 1985
22In the definition of “ bank ” in section 106(1)...
The Credit Unions (Northern Ireland) Order 1985
23(1) In the definition of “authorised bank” in Article 2(2)...
The Finance Act 1986
24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Insolvency Act 1986
25(1) For paragraph (b) of section 8(4) of the Insolvency...
The Building Societies Act 1986
26(1) In section 18(17) of the Building Societies Act 1986...
The Financial Services Act 1986
27(1) In section 75(6)(e) of the Financial Services Act 1986...
The Companies (Northern Ireland) Order 1986
28(1) In Article 2(3) of the Companies (Northern Ireland) Order...
SCHEDULE 7 Repeals and Revocations
Part I Enactments
Part II Instruments

Banking Act 1987

1987 c. 22

An Act to make new provision for regulating the acceptance of deposits in the course of a business, for protecting depositors and for regulating the use of banking names and descriptions; to amend section 187 of the Consumer Credit Act 1974 in relation to arrangements for the electronic transfer of funds; to clarify the powers conferred by section 183 of the Financial Services Act 1986; and for purposes connected with those matters.

C2C3Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Annotations:
Modifications etc. (not altering text)
C1

Act restricted (1.6.1998) by 1998 c. 11, s. 26, Sch. 6 para. 1(1); S.I. 1998/1120, art. 2

C2

Certain functions of the Bank transferred to the Financial Services Authority (1.6.1998) by 1998 c. 11, ss. 21, 22, Sch. 4; S.I. 1998/1120, art. 2

C3

Power to amend conferred (9.6.1997) by 1997 c. 32, s. 32(5)(c); S.I. 1997/1427, art. 2(g)