Bank Resolution (Recapitalisation) Act 2025 (c. 15)

Prospective

7 Amendments to the Banking Act 2009 U.K.

(1) The Banking Act 2009 is amended as follows.

(2) In section 3 (interpretation: other expressions), in subsection (1), in the definition of “extraordinary public financial support”—

(a) omit the “or” at the end of paragraph (a), and

(b) at the end of paragraph (b) insert “, or

(c) any amount in respect of which the Bank of England may require a recapitalisation payment under section 214E of the Financial Services and Markets Act 2000,”.

(3) In section 12AA (bail-in: sequence of write-down and conversion of capital instruments and liabilities), in subsection (2), in the definition of “the shortfall amount”, at the end insert “less the amount of any recapitalisation payment required under section 214E of the Financial Services and Markets Act 2000 in relation to the bank in question”.

(4) In section 15 (share transfer instrument), after subsection (1) insert—

“(1A) Where the Bank of England requires a recapitalisation payment to be made under section 214E of the Financial Services and Markets Act 2000 in respect of a specified bank, a share transfer instrument may include provision requiring the specified bank to issue securities.”

(5) In section 57 (valuation principles), after subsection (3) insert—

“(3A) In subsection (3), “financial assistance” includes any amount in respect of which the Bank of England may require a recapitalisation payment under section 214E of the Financial Services and Markets Act 2000.”

(6) In section 58 (resolution fund), after subsection (2) insert—

“(2A) In subsection (2), “public financial assistance” includes any amount in respect of which the Bank of England may require a recapitalisation payment under section 214E of the Financial Services and Markets Act 2000.”

(7) In section 78A (pre-conditions for financial assistance), at the end insert—

“(4) This section does not apply where the Bank of England has required, or decided to require, a recapitalisation payment under section 214E of the Financial Services and Markets Act 2000.”

Commencement Information

I1 S. 7 not in force at Royal Assent, see s. 8(2)