# Banking Act 2009, Section 1: Overview

Extent: E+W+S+N.I.

(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.
(2) The special resolution regime consists of—
(a) the five stabilisation options,
(b) the bank insolvency procedure (provided by Part 2), and
(c) the bank administration procedure (provided by Part 3).
(3) The five “stabilisation options” are—
(a) transfer to a private sector purchaser (section 11),
(b) transfer to a bridge bank (section 12),
(ba) transfer to an asset management vehicle (section 12ZA),
(c) the bail-in option (section 12A), and
(d) transfer to temporary public ownership (section 13).
(4) Each of the five stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are—
(za) the resolution instrument powers (sections 12A(2) and 48U to 48W),
(a) the share transfer powers (sections 15, 16, 26 to 31 and 85), and
(b) the property transfer powers (sections 33, 41A and 42 to 46).
(c) the third country instrument powers (sections 89H to 89J).
(5) Each of the following has a role in the operation of the special resolution regime—
(a) the Bank of England,
(b) the Treasury,
(c) the Prudential Regulation Authority, and
(d) the Financial Conduct Authority.
(6) The Table describes the provisions of this Part.
Sections
Topic
Sections 1 to 3
Introduction
Sections 3A and 3B
Pre-resolution powers
Sections 4 to 6
Objectives and code
Sections 6A to 6D
Mandatory write-down, conversion etc of capital instruments
Section 6E
Valuation before mandatory write-down or stabilisation action
Sections 7 to 10
Exercise of powers: general
Sections 11 to 13
The stabilisation options
Sections 14 to 32
Transfer of securities
Sections 33 to 48A
Transfer of property
Sections 48B to 48WA
Bail-in option
Sections 48X and 48Y
Replacement of provisional valuation
Section 48Z
Termination rights etc
Sections 49 to 62
Compensation
Section 62A
Independent valuer
Sections 62B to 62E
Resolution administrator
Sections 63 to 75
Incidental functions
Sections 76 to 81A
Treasury
Sections 81B to 83
Groups
Sections 83ZA to 83Z2
Information and enforcement
Section 83A
Banks not regulated by the PRA
Sections 84 to 89
Building societies, &c.
Section 89A
Investment firms
. . .
. . .
Sections 89H to 89J
Third-country resolution actions
Section 89JA
Resolution of UK branches of third-country institutions

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Source: https://www.legislation.gov.uk/ukpga/2009/1/section/1 (the official version)
Page: https://openlegislation.uk/banking-act-2009/section-1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.