Section 78A Pre-conditions for financial assistance: duty of Bank to give informationF1
United Kingdom
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.
“Condition for financial assistance” means a condition specified in—
Article 37(10)(a) (financial assistance through government stabilisation tools), or
Article 44(5)(a) (contributions to institution from resolution financing arrangement where F2bail-in liabilities have been excluded from bail-in),
of the recovery and resolution directive.
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—
whether or not the proposals involve action in relation to which a condition for financial assistance applies, and
if the proposals do involve such action, whether or not the condition in question has been met.
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.
Annotations
Textual amendments
- F1
S. 78A inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 85
- F2
Word in s. 78A(2)(b) substituted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 12
- F3
S. 78A(4) inserted (16.7.2025) by Bank Resolution (Recapitalisation) Act 2025 (c. 15), ss. 7(7), 8(2); S.I. 2025/872, reg. 2(g)
Notes on Part 1
Modifications
- C1
Pt. 1 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2
- C2
Pt. 1: power to amend conferred (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 17(3)(f), 148(5); S.I. 2014/377, art. 2(1)(b), Sch. Pt. 2
Notes on Chapter 3
Textual amendments
- F1
Pt. 1 Ch. 3 formed from ss. 4-83 (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 7