UK Parliament has agreed the final text of the Bank Resolution (Recapitalisation) Bill, which is intended to give the Bank of England more flexibility in managing the failure of small banks. In the final “ping pong” stage, the House of Lords approved two House of Commons amendments that removed provisions on minimum requirements for recapitalisation payments and on ensuring the new law incurs zero cost to the public. The bill was previously considered in the House of Lords between 18 July and 12 November 2024 before moving to the House of Commons, and returned to the Lords for consideration of the Commons changes on 12 May 2025. Following agreement by both Houses, the bill received Royal Assent on 15 May and became an Act of Parliament.
UK Parliament 2025-05-13
UK Parliament passes bank resolution recapitalisation law for small bank failures after dropping minimum recapitalisation payment and zero public cost clauses
The UK Parliament has finalized the Bank Resolution (Recapitalisation) Bill, granting the Bank of England greater flexibility in handling small bank failures. The House of Lords approved amendments from the House of Commons, removing provisions on recapitalisation payment requirements and public cost neutrality. The bill received Royal Assent on 15 May, becoming an Act of Parliament.