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Banking Bill

Amendment 12 proposes that we include in the SRR objectives that expenditure of public and private funds is done in an economically efficient manner. Of course, I absolutely agree with the intention behind the amendment, but again I am not convinced by the argument to place this as an objective of the special resolution regime. First, I should say, as the noble Lord, Lord Howard of Rising, has anticipated, that there are adequate general mechanisms to monitor and provide oversight of the use of private and public funds by the Government and other public bodies. In addition to the value-for-money and propriety analysis, the Government will, before providing financial assistance, undertake external mechanisms to ensure that assistance is provided in an appropriate manner—for example, through the excellent work of the National Audit Office. On private funds, if the noble Lord was referring to the funds of the FSCS, we have put in place a number of provisions to ensure that when it is called upon to fund the special resolution regime, under Clause 168, these funds are used in an appropriate manner. I refer in particular to the requirement that any resolution cost to which the FSCS must contribute be independently verified, and the core principle that the FSCS cannot contribute more than it would have had to pay out to insured depositors, if the bank had entered insolvency. Given that these safeguards are in place I hope that the noble Lord can consider withdrawing the amendment.