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Banking Act 2009

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Changes over time for: Section 7

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Version Superseded: 01/01/2015

Status:

Point in time view as at 01/04/2013. This version of this provision has been superseded. Help about Status

Changes to legislation:

Banking Act 2009, Section 7 is up to date with all changes known to be in force on or before 18 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

7General conditionsU.K.

This section has no associated Explanatory Notes

(1)A stabilisation power may be exercised in respect of a bank only if the [F1PRA] is satisfied that the following conditions are met.

(2)Condition 1 is that the bank is failing, or is likely to fail, to satisfy the threshold conditions F2....

(3)Condition 2 is that having regard to timing and other relevant circumstances it is not reasonably likely that (ignoring the stabilisation powers) action will be taken by or in respect of the bank that will enable the bank to satisfy the threshold conditions.

(4)The [F3PRA] shall treat Conditions 1 and 2 as met if satisfied that they would be met but for financial assistance provided by—

(a)the Treasury, or

(b)the Bank of England (disregarding ordinary market assistance offered by the Bank on its usual terms).

[F4(4A)“The threshold conditions” means the threshold conditions, as defined by subsection (1) of section 55B of the Financial Services and Markets Act 2000, for which the PRA is treated as responsible under subsection (2) of that section.]

(5)Before determining whether or not Condition 2 is met the [F5PRA] must consult—

(a)the Bank of England,

[F6(aa)the FCA,] and

(b)the Treasury.

(6)The special resolution objectives are not relevant to Conditions 1 and 2.

(7)The conditions for applying for and making a bank insolvency order are set out in sections 96 and 97.

(8)The conditions for applying for and making a bank administration order are set out in sections 143 and 144.

Textual Amendments

F2Words in s. 7(2) omitted (1.4.2013) by virtue of Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 8(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Commencement Information

I1S. 7 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 1

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