UK Parliament has opened written evidence submissions to the House of Commons Public Bill Committee for the Bank Resolution Recapitalisation Bill, which would add a mechanism enabling the Bank of England to recover the costs of recapitalising failing small banks through a levy on the banking sector. The Public Bill Committee will scrutinise the bill line by line and is not expected to hold any oral evidence sessions. The bill would also require the Bank of England to reimburse the Financial Services Compensation Scheme for any surplus funds taken and to report on the use of the mechanism to HM Treasury, the House of Commons Treasury Committee and the House of Lords Financial Services Regulation Committee. An opposition amendment passed during the House of Lords report stage limited the new power to recapitalisation of smaller banks, and the Delegated Powers and Regulatory Reform Committee raised no concerns. The Committee is expected to first meet on 11 February 2025 and to report by 17:00 on 13 February 2025, although written evidence can no longer be received once the Committee concludes its consideration and it may finish earlier than the expected reporting deadline.
UK Parliament 2025-01-28
UK Parliament invites written evidence on bill to let the Bank of England levy the sector for small bank recapitalisation costs
The UK Parliament has opened written evidence submissions for the Bank Resolution Recapitalisation Bill, proposing a levy on the banking sector to recover costs of recapitalising failing small banks. The bill mandates the Bank of England to reimburse the Financial Services Compensation Scheme for surplus funds and report to HM Treasury and relevant committees. An amendment limits the new power to smaller banks, with no concerns raised by the Delegated Powers and Regulatory Reform Committee.