Duty of Bank of England to notify Treasury
85. After section 78 insert—
“Pre-conditions for financial assistance: duty of Bank to give information
78A.—(1) The Treasury may at any time require the Bank of England to inform them in writing whether or not a condition for financial assistance has been met in relation to a particular bank.
(2) “Condition for financial assistance” means a condition specified in—
(a)Article 37(10)(a) (financial assistance through government stabilisation tools), or
(b)Article 44(5)(a) (contributions to institution from resolution financing arrangement where eligible liabilities have been excluded from bail-in),
of the recovery and resolution directive.
(3) If the Bank of England seeks the Treasury’s consent to the making of a mandatory reduction instrument or the exercise of a stabilisation power in accordance with section 78, the Bank must notify the Treasury in writing—
(a)whether or not the proposals involve action in relation to which a condition for financial assistance applies, and
(b)if the proposals do involve such action, whether or not the condition in question has been met.”.