Pre-conditions for financial assistance: duty of Bank to give information78A

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.