Q&As

What are the UK bank resolution powers and tools?

Copyright © 2025 LexisNexis

Published by a LexisNexis Financial Services expert

Published on: 11 June 2025

imgtext

What are the UK bank resolution powers and tools?

The resolution powers and tools available under the UK bank recovery and resolution regime are designed to manage the failure of banks, building societies, and systemically important investment firms in an orderly manner, ensuring financial stability and minimising the use of public funds. These tools are part of the Special Resolution Regime (SRR) established under the Banking Act 2009 (BA 2009) and further developed through subsequent legislation and rules, policy statements and other documents published by the Prudential Regulation Authority (PRA), the Bank of England (BoE) and HM Treasury (HMT).

BA 2009 provides the BoE and HMT with the powers and tools described below for use in the resolution of an in-scope firm.

Mandatory write-down and conversion of capital instruments

There are five cases where the BoE is required to make a write-down and/or conversion of capital instruments which have separate requirements. The cases include the situation where a bank is part of a group or it is a

Powered by Lexis+^®

Jurisdiction(s):

United Kingdom

Popular documents

Banking regulation—Ghana—Q&A guide

Banking regulation—Ghana—Q&A guideThis Practice Note contains a jurisdiction-specific Q&A guide to banking regulation in Ghana published as part of the Lexology Getting the Deal Through series by Law Business Research (published: March 2022).Authors: WTS Nobisfields—Theophilus Tawiah; Peggy

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

Can shares in a limited company that have not been paid-up at all be cancelled?

Can shares in a limited company that have not been paid-up at all be cancelled?A limited company having a share capital may not alter that share capital, except in the ways listed in section 617 of the Companies Act 2006 (CA 2006). Shares in a company cannot simply be cancelled without following an