The Bank Resolution (Recapitalisation) Bill

On 24 April 2025 the Bank Resolution (Recapitalisation) Bill returned to the Commons. The Bill will improve how the UK handles the collapse of banks and other financial companies: expanding the functions of the Financial Services Compensation Scheme (FSCS) and requiring it to provide funds to the Bank of England when needed to help cover the costs of rescuing a failing bank, building society, or investment firm regulated by the Prudential Regulation Authority (PRA); allowing the FSCS to recover funds by imposing levies on raise money from the banking sector; strengthening the Bank of England’s powers to require the issuing of new shares when rescuing a failing bank, using the money provided by the FSCS and amending legislation to support the above measures and ensure FSCS funds can be used effectively in a resolution.

There were two amendments selected for debate:

New clause 3: Requires the Chancellor of the Exchequer to prepare a report on the impact of the Bank Resolution (Recapitalisation) Act on credit unions. I voted against the motion which was lost: Ayes 88  Noes 212

Amendment 2: This amendment wanted the selection of a purchaser from the mutuals sector to be considered to avoid demutualisation, provided this aligns with the Bank’s resolution objectives. I voted against this motion which was lost: Ayes 89  Noes 230

The Bill will progress to the final stages before receiving Royal Assent.