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The King’s Speech: Bank Resolution (Recapitalisation) Bill

17 Jul 2024 (UPDATED: 13 Mar 2026) United Kingdom 1 min read

The Bill introduces a new mechanism to allow BoE to use funds provided by the banking sector to cover certain costs associated with resolving a failing banking institution and achieving its sale in whole or in part, and is designed to respond more effectively to small bank failures where resolution is judged to be in the public interest by: (i) expanding the statutory function of FSCS which will require FSCS to provide funds to BoE upon request, to be used where necessary to support the resolution of a failing bank; (ii) allowing FSCS to recover the funds provided by charging levies on the banking sector (credit unions will not be in scope of this levy), and (iii) giving BoE an express ability to require a bank in resolution to issue new shares, facilitating the use of FSCS funds to meet a failing bank’s recapitalisation costs.


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