---

Banking Bill

We explained at length in Committee how the system works in terms of the responsibilities of the authorities in the tripartite arrangement. The FSA takes lead responsibility in determining whether the threshold conditions have been met, and the Bank of England is the lead authority in determining which of the stabilisation options should be pursued. We believe that this is a clear mechanism, and that it is right that the Bank of England should have the lead responsibility in this area. In such circumstances, the tripartite will work together extremely closely, and the Bank of England will consult the FSA and the Treasury on the exercise of the stabilisation options.