{
  "url": "https://openlegislation.uk/banking-act-2009/section-1",
  "json_url": "https://openlegislation.uk/banking-act-2009/section-1.json",
  "legislation": "ukpga/2009/1",
  "legislation_title": "Banking Act 2009",
  "legislation_url": "https://openlegislation.uk/banking-act-2009",
  "path": "section/1",
  "kind": "section",
  "number": "1",
  "heading": "Overview",
  "text": "(1) The purpose of the special resolution regime for banks is to address the situation where all or part of the business of a bank has encountered, or is likely to encounter, financial difficulties.\n(2) The special resolution regime consists of—\n(a) the five stabilisation options,\n(b) the bank insolvency procedure (provided by Part 2), and\n(c) the bank administration procedure (provided by Part 3).\n(3) The five “stabilisation options” are—\n(a) transfer to a private sector purchaser (section 11),\n(b) transfer to a bridge bank (section 12),\n(ba) transfer to an asset management vehicle (section 12ZA),\n(c) the bail-in option (section 12A), and\n(d) transfer to temporary public ownership (section 13).\n(4) Each of the five stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are—\n(za) the resolution instrument powers (sections 12A(2) and 48U to 48W),\n(a) the share transfer powers (sections 15, 16, 26 to 31 and 85), and\n(b) the property transfer powers (sections 33, 41A and 42 to 46).\n(c) the third country instrument powers (sections 89H to 89J).\n(5) Each of the following has a role in the operation of the special resolution regime—\n(a) the Bank of England,\n(b) the Treasury,\n(c) the Prudential Regulation Authority, and\n(d) the Financial Conduct Authority.\n(6) The Table describes the provisions of this Part.\nSections\nTopic\nSections 1 to 3\nIntroduction\nSections 3A and 3B\nPre-resolution powers\nSections 4 to 6\nObjectives and code\nSections 6A to 6D\nMandatory write-down, conversion etc of capital instruments\nSection 6E\nValuation before mandatory write-down or stabilisation action\nSections 7 to 10\nExercise of powers: general\nSections 11 to 13\nThe stabilisation options\nSections 14 to 32\nTransfer of securities\nSections 33 to 48A\nTransfer of property\nSections 48B to 48WA\nBail-in option\nSections 48X and 48Y\nReplacement of provisional valuation\nSection 48Z\nTermination rights etc\nSections 49 to 62\nCompensation\nSection 62A\nIndependent valuer\nSections 62B to 62E\nResolution administrator\nSections 63 to 75\nIncidental functions\nSections 76 to 81A\nTreasury\nSections 81B to 83\nGroups\nSections 83ZA to 83Z2\nInformation and enforcement\nSection 83A\nBanks not regulated by the PRA\nSections 84 to 89\nBuilding societies, &c.\nSection 89A\nInvestment firms\n. . .\n. . .\nSections 89H to 89J\nThird-country resolution actions\nSection 89JA\nResolution of UK branches of third-country institutions",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Word in s. 1(2)(a) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 1(3) substituted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 12(3); S.I. 2014/3160, art. 2(1)(b)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Word in s. 1(3) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(3)(a)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "S. 1(3)(ba) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(3)(b)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Word in s. 1(4) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(4)(a)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "S. 1(4)(za) inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 12(4)(b); S.I. 2014/3160, art. 2(1)(b)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Word in s. 1(4)(b) inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 12(4)(c); S.I. 2014/3160, art. 2(1)(b)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "S. 1(4)(c) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(4)(b)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "S. 1(5)(c)(d) substituted for s. 1(5)(c) (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 2(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch."
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in s. 1(6) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(5)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Word in s. 1(6) substituted (8.4.2010) by Financial Services Act 2010 (c. 28), s. 26(1)(l), Sch. 2 para. 40"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Word in s. 1(6) substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 3"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Word in s. 1(6) substituted (1.1.2015) by Financial Services Act 2012 (c. 21), ss. 99(3), 122(3) (with Sch. 20); S.I. 2014/3323, art. 2"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "Words in s 1(6) substituted (1.8.2014) by Financial Services Act 2012 (c. 21), ss. 100(2), 122(3) (with Sch. 20); S.I. 2014/1847, art. 2"
    },
    {
      "type": "F",
      "label": "F15",
      "text": "Words in s. 1(6) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 2(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch."
    },
    {
      "type": "F",
      "label": "F16",
      "text": "Words in s 1(6) inserted (1.8.2014) by Financial Services Act 2012 (c. 21), ss. 101(2), 122(3) (with Sch. 20); S.I. 2014/1847, art. 2"
    },
    {
      "type": "F",
      "label": "F17",
      "text": "Words in s. 1(6) omitted (31.12.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(2); S.I. 2023/1382, reg. 8(b) (with reg. 14)"
    },
    {
      "type": "F",
      "label": "F18",
      "text": "Words in s. 1(6) inserted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 29(2)"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "S. 1 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 1"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2009/1/section/1",
    "retrieved_at": "2026-10-29T09:11:28.246347+00:00",
    "licence": "OGL-UK-3.0",
    "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
    "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
  }
}